Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CSTR | |
Entity Registrant Name | CAPSTAR FINANCIAL HOLDINGS, INC. | |
Entity Central Index Key | 0001676479 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37886 | |
Entity Tax Identification Number | 811527911 | |
Entity Address, Address Line One | 1201 Demonbreun Street | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | Tennessee | |
Entity Address, Postal Zip Code | 37203 | |
City Area Code | 615 | |
Local Phone Number | 732-6400 | |
Voting | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,428,994 | |
Nonvoting | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 132,561 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 22,621 | $ 17,967 |
Interest-bearing deposits in financial institutions | 133,464 | 76,714 |
Federal funds sold | 10,762 | |
Total cash and cash equivalents | 156,085 | 105,443 |
Securities available-for-sale, at fair value | 194,957 | 243,808 |
Securities held-to-maturity, fair value of $3,820, and $3,785 at June 30, 2019 and December 31, 2018, respectively | 3,721 | 3,734 |
Loans held for sale (includes $37,604 and $0 measured at fair value at June 30, 2019 and December 31, 2018, respectively) | 89,629 | 57,618 |
Loans | 1,440,617 | 1,429,794 |
Less allowance for loan losses | (12,903) | (12,113) |
Loans, net | 1,427,714 | 1,417,681 |
Premises and equipment, net | 19,503 | 18,821 |
Restricted equity securities | 14,150 | 12,038 |
Accrued interest receivable | 6,045 | 5,964 |
Goodwill | 37,510 | 37,510 |
Core deposit intangible, net | 7,689 | 8,538 |
Other real estate owned, net | 914 | 988 |
Other assets | 60,504 | 51,740 |
Total assets | 2,018,421 | 1,963,883 |
Deposits: | ||
Non-interest-bearing | 326,550 | 289,552 |
Interest-bearing | 491,137 | 434,921 |
Savings and money market accounts | 508,443 | 497,108 |
Time | 396,640 | 348,427 |
Total deposits | 1,722,770 | 1,570,008 |
Federal Home Loan Bank advances | 10,000 | 125,000 |
Other liabilities | 22,987 | 14,496 |
Total liabilities | 1,755,757 | 1,709,504 |
Shareholders’ equity: | ||
Series A convertible preferred stock, $1 par value; 5,000,000 shares authorized; 878,049 shares issued and outstanding at June 30, 2019 and December 31, 2018 | 878 | 878 |
Additional paid-in capital | 207,873 | 211,789 |
Retained earnings | 36,165 | 27,303 |
Accumulated other comprehensive income (loss), net of income tax | 186 | (3,316) |
Total shareholders’ equity | 262,664 | 254,379 |
Total liabilities and shareholders’ equity | 2,018,421 | 1,963,883 |
Voting | ||
Shareholders’ equity: | ||
Common stock | 17,429 | 17,592 |
Nonvoting | ||
Shareholders’ equity: | ||
Common stock | $ 133 | $ 133 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Securities held to maturity, fair value | $ 3,820,000 | $ 3,785,000 |
Loans held for sale carried at fair value | $ 37,604,000 | $ 0 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 878,049 | 878,049 |
Preferred stock, shares outstanding | 878,049 | 878,049 |
Voting | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 17,428,915 | 17,592,160 |
Common stock, shares outstanding | 17,428,915 | 17,592,160 |
Nonvoting | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 132,561 | 132,561 |
Common stock, shares outstanding | 132,561 | 132,561 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Loans, including fees | $ 20,999 | $ 13,796 | $ 41,591 | $ 26,030 |
Securities: | ||||
Taxable | 1,165 | 943 | 2,512 | 1,823 |
Tax-exempt | 363 | 257 | 739 | 538 |
Federal funds sold | 6 | 19 | 25 | 39 |
Restricted equity securities | 214 | 128 | 401 | 257 |
Interest-bearing deposits in financial institutions | 411 | 211 | 857 | 411 |
Total interest income | 23,158 | 15,354 | 46,125 | 29,098 |
Interest expense: | ||||
Interest-bearing deposits | 1,827 | 892 | 3,420 | 1,646 |
Savings and money market accounts | 1,782 | 1,413 | 3,500 | 2,418 |
Time deposits | 2,217 | 834 | 4,030 | 1,483 |
Federal funds purchased | 1 | 4 | 1 | |
Securities sold under agreements to repurchase | 5 | |||
Federal Home Loan Bank advances | 324 | 627 | 1,156 | 1,117 |
Total interest expense | 6,150 | 3,767 | 12,115 | 6,665 |
Net interest income | 17,008 | 11,587 | 34,010 | 22,433 |
Provision for loan losses | 169 | 886 | 846 | |
Net interest income after provision for loan losses | 17,008 | 11,418 | 33,124 | 21,587 |
Noninterest income: | ||||
Noninterest income | 4,472 | 2,695 | ||
Net gain (loss) on sale of securities | (121) | 3 | (108) | 3 |
Tri-Net fees | 1,024 | 325 | 1,664 | 853 |
Other noninterest income | 2,229 | 627 | 4,128 | 1,474 |
Total noninterest income | 7,032 | 2,765 | 11,767 | 5,854 |
Noninterest expense: | ||||
Salaries and employee benefits | 8,563 | 6,340 | 16,995 | 12,598 |
Data processing and software | 1,862 | 810 | 3,336 | 1,608 |
Professional fees | 501 | 344 | 1,043 | 819 |
Occupancy | 809 | 535 | 1,692 | 1,056 |
Equipment | 1,026 | 602 | 1,878 | 1,141 |
Regulatory fees | 272 | 233 | 546 | 436 |
Merger related expenses | 1,711 | 335 | 2,305 | 335 |
Amortization of intangibles | 419 | 10 | 850 | 20 |
Other operating | 1,307 | 796 | 2,551 | 1,573 |
Total noninterest expense | 16,470 | 10,005 | 31,196 | 19,586 |
Income before income taxes | 7,570 | 4,178 | 13,695 | 7,855 |
Income tax expense | 1,814 | 665 | 3,160 | 1,148 |
Net income | $ 5,756 | $ 3,513 | $ 10,535 | $ 6,707 |
Per share information: | ||||
Basic net income per share of common stock | $ 0.33 | $ 0.30 | $ 0.59 | $ 0.57 |
Diluted net income per share of common stock | $ 0.31 | $ 0.27 | $ 0.56 | $ 0.52 |
Weighted average shares outstanding: | ||||
Basic | 17,663,992 | 11,845,822 | 17,723,286 | 11,755,535 |
Diluted | 18,650,706 | 13,067,223 | 18,740,322 | 13,021,744 |
Treasury Management And Other Deposit Service Charges | ||||
Noninterest income: | ||||
Noninterest income | $ 813 | $ 427 | $ 1,611 | $ 829 |
Mortgage Banking Income | ||||
Noninterest income: | ||||
Noninterest income | $ 3,087 | $ 1,383 | $ 4,472 | $ 2,695 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 5,756 | $ 3,513 | $ 10,535 | $ 6,707 |
Unrealized gains (losses) on securities available-for-sale: | ||||
Unrealized holding gains (losses) arising during the period | 2,125 | (573) | 5,390 | (4,927) |
Reclassification adjustment for (gains) losses included in net income | 121 | (3) | 108 | (3) |
Tax effect | (588) | 151 | (1,438) | 1,289 |
Net of tax | 1,658 | (425) | 4,060 | (3,641) |
Unrealized losses on securities transferred to held-to-maturity: | ||||
Reclassification adjustment for losses included in net income | 14 | |||
Tax effect | (4) | |||
Net of tax | 10 | |||
Unrealized gains (losses) on cash flow hedges: | ||||
Unrealized holding gains (losses) arising during the period | (461) | 144 | (701) | 567 |
Reclassification adjustment for losses included in net income | 165 | 224 | 362 | 475 |
Tax effect | (272) | (54) | (219) | (189) |
Net of tax | (568) | 314 | (558) | 853 |
Other comprehensive income (loss) | 1,090 | (111) | 3,502 | (2,778) |
Comprehensive income | $ 6,846 | $ 3,402 | $ 14,037 | $ 3,929 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock, Voting | Common Stock, Nonvoting | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2017 | $ 146,946 | $ 878 | $ 11,450 | $ 133 | $ 118,120 | $ 18,892 | $ (2,527) |
Beginning balance, shares at Dec. 31, 2017 | 11,449,465 | 132,561 | |||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations | (329) | $ 25 | (354) | ||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | 24,729 | ||||||
Stock-based compensation expense | 305 | 305 | |||||
Exercise of employee common stock options | 300 | $ 62 | 238 | ||||
Exercise of employee common stock options, shares | 61,822 | ||||||
Exercise of common stock warrants | 942 | $ 104 | 838 | ||||
Exercise of common stock warrants, shares | 104,781 | ||||||
Net income | 3,194 | 3,194 | |||||
Other comprehensive income (loss) | (2,667) | (2,667) | |||||
Ending balance at Mar. 31, 2018 | 148,691 | 878 | $ 11,641 | $ 133 | 119,147 | 22,086 | (5,194) |
Ending balance, shares at Mar. 31, 2018 | 11,640,797 | 132,561 | |||||
Beginning balance at Dec. 31, 2017 | 146,946 | 878 | $ 11,450 | $ 133 | 118,120 | 18,892 | (2,527) |
Beginning balance, shares at Dec. 31, 2017 | 11,449,465 | 132,561 | |||||
Net income | 6,707 | ||||||
Other comprehensive income (loss) | (2,778) | (2,778) | |||||
Ending balance at Jun. 30, 2018 | 153,146 | 878 | $ 11,799 | $ 133 | 120,555 | 25,086 | (5,305) |
Ending balance, shares at Jun. 30, 2018 | 11,798,570 | 132,561 | |||||
Beginning balance at Mar. 31, 2018 | 148,691 | 878 | $ 11,641 | $ 133 | 119,147 | 22,086 | (5,194) |
Beginning balance, shares at Mar. 31, 2018 | 11,640,797 | 132,561 | |||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations | (24) | $ 5 | (29) | ||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | 5,419 | ||||||
Stock-based compensation expense | 325 | 325 | |||||
Exercise of employee common stock options | 897 | $ 106 | 791 | ||||
Exercise of employee common stock options, shares | 106,550 | ||||||
Exercise of common stock warrants | 368 | $ 47 | 321 | ||||
Exercise of common stock warrants, shares | 45,804 | ||||||
Common and preferred dividends declared | (513) | (513) | |||||
Net income | 3,513 | 3,513 | |||||
Other comprehensive income (loss) | (111) | (111) | |||||
Ending balance at Jun. 30, 2018 | 153,146 | 878 | $ 11,799 | $ 133 | 120,555 | 25,086 | (5,305) |
Ending balance, shares at Jun. 30, 2018 | 11,798,570 | 132,561 | |||||
Beginning balance at Dec. 31, 2018 | 254,379 | 878 | $ 17,592 | $ 133 | 211,789 | 27,303 | (3,316) |
Beginning balance, shares at Dec. 31, 2018 | 17,592,160 | 132,561 | |||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations | (168) | $ 14 | (182) | ||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | 13,801 | ||||||
Stock-based compensation expense | 344 | 344 | |||||
Exercise of employee common stock options | 1,180 | $ 182 | 998 | ||||
Exercise of employee common stock options, shares | 182,002 | ||||||
Repurchase of commonstock | (2,431) | $ (155) | (2,276) | ||||
Repurchase of common, shares | (155,400) | ||||||
Common and preferred dividends declared | (744) | (744) | |||||
Net income | 4,779 | 4,779 | |||||
Other comprehensive income (loss) | 2,412 | 2,412 | |||||
Ending balance at Mar. 31, 2019 | 259,751 | 878 | $ 17,633 | $ 133 | 210,673 | 31,338 | (904) |
Ending balance, shares at Mar. 31, 2019 | 17,632,563 | 132,561 | |||||
Beginning balance at Dec. 31, 2018 | $ 254,379 | 878 | $ 17,592 | $ 133 | 211,789 | 27,303 | (3,316) |
Beginning balance, shares at Dec. 31, 2018 | 17,592,160 | 132,561 | |||||
Exercise of employee common stock options, shares | 218,954 | ||||||
Net income | $ 10,535 | ||||||
Other comprehensive income (loss) | 3,502 | 3,502 | |||||
Ending balance at Jun. 30, 2019 | 262,664 | 878 | $ 17,429 | $ 133 | 207,873 | 36,165 | 186 |
Ending balance, shares at Jun. 30, 2019 | 17,428,915 | 132,561 | |||||
Beginning balance at Mar. 31, 2019 | 259,751 | 878 | $ 17,633 | $ 133 | 210,673 | 31,338 | (904) |
Beginning balance, shares at Mar. 31, 2019 | 17,632,563 | 132,561 | |||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations | (13) | $ (7) | (6) | ||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | (6,826) | ||||||
Stock-based compensation expense | 340 | 340 | |||||
Exercise of employee common stock options | 74 | $ 23 | 51 | ||||
Exercise of employee common stock options, shares | 22,778 | ||||||
Repurchase of commonstock | (3,405) | $ (220) | (3,185) | ||||
Repurchase of common, shares | (219,600) | ||||||
Common and preferred dividends declared | (929) | (929) | |||||
Net income | 5,756 | 5,756 | |||||
Other comprehensive income (loss) | 1,090 | 1,090 | |||||
Ending balance at Jun. 30, 2019 | $ 262,664 | $ 878 | $ 17,429 | $ 133 | $ 207,873 | $ 36,165 | $ 186 |
Ending balance, shares at Jun. 30, 2019 | 17,428,915 | 132,561 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 10,535 | $ 6,707 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 886 | 846 |
Accretion of discounts on acquired loans and deferred fees | (1,106) | (653) |
Depreciation and amortization | 1,461 | 205 |
Net amortization of premiums on investment securities | 400 | 541 |
Net (gain) loss on sale of securities | 108 | (3) |
Mortgage banking income | $ (4,472) | $ (2,695) |
Type of Revenue [Extensible List] | us-gaap:MortgageBankingMember | us-gaap:MortgageBankingMember |
Tri-Net fees | $ (1,664) | $ (853) |
Net gain on sale of loans | (361) | |
Net gain on sale of other real estate owned | (3) | |
Stock-based compensation | 684 | 630 |
Deferred income tax expense | 342 | 124 |
Origination of loans held for sale | (327,460) | (261,924) |
Proceeds from loans held for sale | 301,585 | 274,245 |
Net increase in accrued interest receivable and other assets | (10,852) | (464) |
Net increase in accrued interest payable and other liabilities | 9,655 | 934 |
Net cash provided by (used in) operating activities | (20,262) | 17,640 |
Activities in securities available-for-sale: | ||
Purchases | (12,751) | (11,708) |
Sales | 54,133 | 5,778 |
Maturities, prepayments and calls | 12,471 | 9,746 |
Purchase of restricted equity securities | (2,112) | (3) |
Net increase in loans | (9,502) | (98,197) |
Purchase of premises and equipment | (1,285) | (132) |
Proceeds from sale of other real estate | 127 | |
Net cash provided by (used in) investing activities | 41,081 | (94,516) |
Cash flows from financing activities: | ||
Net increase in deposits | 152,762 | 25,147 |
Proceeds from Federal Home Loan Bank advances | 75,000 | 80,000 |
Payments on Federal Home Loan Bank advances | (190,000) | (55,000) |
Repurchase of common stock | (5,836) | |
Exercise of common stock options and warrants, net of repurchase of restricted shares | 1,073 | 2,154 |
Common and preferred stock dividends paid | (1,673) | |
Termination of interest rate swap agreement | (1,503) | |
Net cash provided by financing activities | 29,823 | 52,301 |
Net increase (decrease) in cash and cash equivalents | 50,642 | (24,575) |
Cash and cash equivalents at beginning of period | 105,443 | 82,797 |
Cash and cash equivalents at end of period | 156,085 | 58,222 |
Supplemental disclosures of cash paid: | ||
Interest paid | 12,294 | 6,452 |
Income taxes | 251 | 176 |
Cash paid for operating lease liabilities | 894 | 809 |
Supplemental disclosures of noncash transactions: | ||
Transfer of loans to other real estate | 50 | |
Loans charged off to the allowance for loan losses | $ 200 | 251 |
Dividends declared not paid | $ 513 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements as of and for the period ended June 30, 2019 include CapStar Financial Holdings, Inc. and its wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. These unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio, loans held for sale, derivative assets and liabilities, deferred tax assets and estimated liabilities. Loans Held For Sale and Fair Value Option The Company classifies loans as loans held for sale when originated with the intent to sell. As of April 1, 2019, the Company elected the fair value option for all residential mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other loans held for sale primarily because they are not economically hedged using derivative instruments. The fair value of residential mortgage loans originated with the intent to sell is based on traded market prices of similar assets. Other loans held for sale that are recorded at lower of cost or fair value may be carried at fair value on a nonrecurring basis when the fair value is less than cost. For further information, see Note 13 - Fair Value. The Company does not securitize mortgage loans. If the Company sells loans with servicing rights retained, the carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Fair values of residential mortgage loans held for sale are based on traded market prices of similar assets. The changes in fair value are recorded as a component of mortgage banking income and included gains of $0.9 million for the three and six months ended June 30, 2019. There were no loans held for sale recorded at fair value as of December 31, 2018. The following table summarizes the difference between the fair value and the aggregate unpaid principal balance for residential real estate loans held for sale as of June 30, 2019 (dollars in thousands): Fair Value Aggregate Unpaid Principal Balance Difference June 30, 2019 Residential mortgage loans held for sale $ 37,604 $ 36,692 $ 912 No residential mortgage loans held for sale were greater than 89 days past due or on nonaccrual status as of June 30, 2019 or December 31, 2018. Subsequent Events Accounting Standards Codification (“ASC”) 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all events or transactions that occurred after June 30, 2019 through the date of the issued financial statements. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | NOTE 2 – SECURITIES The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2019 and December 31, 2018 are summarized as follows (dollars in thousands): June 30, 2019 December 31, 2018 Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Securities available-for-sale: U. S. government agency securities $ 6,491 $ 41 $ (55 ) $ 6,477 $ 11,053 $ — $ (347 ) $ 10,706 State and municipal securities 49,911 1,665 (77 ) 51,499 62,142 765 (981 ) 61,926 Mortgage-backed securities 124,073 1,552 (785 ) 124,840 146,547 776 (3,165 ) 144,158 Asset-backed securities 3,402 — (103 ) 3,299 15,437 4 (157 ) 15,284 Other debt securities 8,816 68 (42 ) 8,842 11,863 71 (200 ) 11,734 Total $ 192,693 $ 3,326 $ (1,062 ) $ 194,957 $ 247,042 $ 1,616 $ (4,850 ) $ 243,808 Securities held-to-maturity: State and municipal securities $ 3,721 $ 99 $ — $ 3,820 $ 3,734 $ 54 $ (3 ) $ 3,785 Total $ 3,721 $ 99 $ — $ 3,820 $ 3,734 $ 54 $ (3 ) $ 3,785 Security fair values are established by an independent pricing service as of the dates indicated. The difference between amortized cost and fair value reflects current interest rates and represents the potential gain (loss) had the portfolio been liquidated on those dates. Security gains (losses) are realized only in the event of dispositions prior to maturity or other-than-temporary impairment. Securities with unrealized losses as of June 30, 2019 and December 31, 2018, and the length of time they were in continuous loss positions as of such dates are as follows (dollars in thousands): Less than 12 months 12 months or more Total June 30, 2019 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ — $ — $ 3,715 $ (55 ) $ 3,715 $ (55 ) State and municipal securities — — 6,340 (77 ) 6,340 (77 ) Mortgage-backed securities 3,002 (7 ) 61,711 (778 ) 64,713 (785 ) Asset-backed securities 3,299 (103 ) — — 3,299 (103 ) Other debt securities 985 (15 ) 2,489 (27 ) 3,474 (42 ) Total temporarily impaired securities $ 7,286 $ (125 ) $ 74,255 $ (937 ) $ 81,541 $ (1,062 ) December 31, 2018 U. S. government agency securities $ — $ — $ 10,706 $ (347 ) $ 10,706 $ (347 ) State and municipal securities 13,455 (212 ) 17,376 (772 ) 30,831 (984 ) Mortgage-backed securities 7,075 (17 ) 87,232 (3,148 ) 94,307 (3,165 ) Asset-backed securities 8,262 (145 ) 2,439 (12 ) 10,701 (157 ) Other debt securities 5,362 (200 ) — — 5,362 (200 ) Total temporarily impaired securities $ 34,154 $ (574 ) $ 117,753 $ (4,279 ) $ 151,907 $ (4,853 ) As noted in the table above, as of June 30, 2019, the Company had unrealized losses of $1.1 million in its investment securities portfolio. The unrealized losses associated with these investment securities are driven by changes in interest rates and are recorded as a component of equity. These investment securities will continue to be monitored as a part of our ongoing impairment analysis. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. If a shortfall in future cash flows is identified, a credit loss will be deemed to have occurred and will be recognized as a charge to earnings and a new cost basis for the security will be established. At June 30, 2019 and December 31, 2018, the Company had 59 and 127, respectively of securities in an unrealized loss position. Because the Company currently does not intend to sell any investment securities that have an unrealized loss at June 30, 2019, and it is not more-likely-than-not that we will be required to sell these investment securities before recovery of their amortized cost bases, which may be at maturity, we do not consider these securities to be other-than-temporarily impaired at June 30, 2019. Securities with a market value of $80.8 million at June 30, 2019 were pledged to collateralize public deposits, derivative positions and Federal Home Loan Bank advances. Results from sales of debt and equity securities were as follows (dollars in thousands): Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Proceeds $ 54,133 $ 5,778 Gross gains 370 107 Gross losses (478 ) (104 ) The amortized cost and fair value of securities at June 30, 2019, by contractual maturity, are shown below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized cost Estimated fair value Amortized cost Estimated fair value Due in less than one year $ 6,794 $ 6,870 $ 998 $ 999 Due one to five years 24,757 25,289 2,723 2,821 Due five to ten years 30,966 32,009 — — Due beyond ten years 2,701 2,650 — — Mortgage-backed securities 124,073 124,840 — — Asset-backed securities 3,402 3,299 — — Total $ 192,693 $ 194,957 $ 3,721 $ 3,820 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan and Lease Losses | NOTE 3 – LOANS AND ALLLOWANCE FOR LOAN LOSSES A summary of the loan portfolio as of June 30, 2019 and December 31, 2018 follows (dollars in thousands): June 30, 2019 December 31, 2018 Commercial real estate $ 594,812 $ 550,446 Consumer real estate 255,043 253,562 Construction and land development 123,901 174,670 Commercial and industrial 404,745 404,600 Consumer 26,704 25,615 Other 35,412 20,901 Total 1,440,617 1,429,794 Allowance for loan losses (12,903 ) (12,113 ) Total loans, net $ 1,427,714 $ 1,417,681 The adequacy of the allowance for loan losses (ALL) is assessed at the end of each quarter. The ALL includes a specific component related to loans that are individually evaluated for impairment and a general component related to loans that are segregated into homogeneous pools and collectively evaluated for impairment. The ALL factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics, which are adjusted by management to reflect current events, trends, and conditions. The adjustments include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes all commercial loans, and consumer relationships with an outstanding balance greater than $500,000, individually and assigns each loan a risk rating. This analysis is performed on a continual basis by the relationship managers and credit department personnel. On at least an annual basis an independent party performs a formal credit risk review of a sample of the loan portfolio. Among other things, this review assesses the appropriateness of the loan’s risk rating. The Company uses the following definitions for risk ratings: Special Mention – A special mention asset possesses deficiencies or potential weaknesses deserving of management’s attention. If uncorrected, such weaknesses or deficiencies may expose the Company to an increased risk of loss in the future. Substandard – A substandard asset is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. Doubtful – A doubtful asset has all weaknesses inherent in one classified substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but certain important and reasonable specific pending factors which may work to the advantage and strengthening of the asset exist, therefore, its classification as an estimated loss is deferred until a more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. Loans not falling into the criteria above are considered to be pass-rated loans. The Company utilizes six loan grades within the pass risk rating. The following tables present the loan balances by category as well as risk rating (dollars in thousands): Non-impaired Loans June 30, 2019 Pass/Watch Special Mention Substandard Total Non-impaired Total Loans Total Commercial real estate $ 592,071 $ 164 $ 1,228 $ 593,463 $ 1,349 $ 594,812 Consumer real estate 250,647 1,677 1,820 254,144 899 255,043 Construction and land development 123,710 50 17 123,777 124 123,901 Commercial and industrial 383,040 10,856 9,531 403,427 1,318 404,745 Consumer 26,661 — 4 26,665 39 26,704 Other 35,412 — — 35,412 — 35,412 Total $ 1,411,541 $ 12,747 $ 12,600 $ 1,436,888 $ 3,729 $ 1,440,617 December 31, 2018 Commercial real estate $ 547,616 $ 177 $ 1,262 $ 549,055 $ 1,391 $ 550,446 Consumer real estate 249,273 1,676 1,691 252,640 922 253,562 Construction and land development 174,591 52 19 174,662 8 174,670 Commercial and industrial 388,719 7,790 6,545 403,054 1,546 404,600 Consumer 25,556 1 27 25,584 31 25,615 Other 20,901 — — 20,901 — 20,901 Total $ 1,406,656 $ 9,696 $ 9,544 $ 1,425,896 $ 3,898 $ 1,429,794 None of the Company’s loans had a risk rating of “Doubtful” as of June 30, 2019 or December 31, 2018. The following tables detail the changes in the ALL for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Three Months Ended June 30, 2019 Balance, beginning of period $ 3,514 $ 1,017 $ 2,366 $ 5,524 $ 139 $ 399 $ 12,959 Charged-off loans — — — (26 ) (41 ) (51 ) (118 ) Recoveries 6 13 — 14 22 7 62 Provision for loan losses 402 112 (633 ) 6 46 67 — Balance, end of period $ 3,922 $ 1,142 $ 1,733 $ 5,518 $ 166 $ 422 $ 12,903 Three Months Ended June 30, 2018 Balance, beginning of period $ 3,512 $ 1,036 $ 1,742 $ 7,798 $ 122 $ 353 $ 14,563 Charged-off loans — — (79 ) (12 ) — (91 ) Recoveries 6 1 — 53 4 — 64 Provision for loan losses 33 20 22 7 6 81 169 Balance, end of period $ 3,551 $ 1,057 $ 1,764 $ 7,779 $ 120 $ 434 $ 14,705 Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Six Months Ended June 30, 2019 Balance, beginning of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Charged-off loans — — — (26 ) (78 ) (96 ) (200 ) Recoveries 12 16 16 41 19 104 Provision for loan losses 601 121 (698 ) 492 98 272 886 Balance, end of period $ 3,922 $ 1,142 $ 1,733 $ 5,518 $ 166 $ 422 $ 12,903 Six Months Ended June 30, 2018 Balance, beginning of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Charged-off loans — — — (226 ) (25 ) — (251 ) Recoveries 10 2 — 326 51 — 389 Provision for loan losses 217 (8 ) 136 470 3 28 846 Balance, end of period $ 3,551 $ 1,057 $ 1,764 $ 7,779 $ 120 $ 434 $ 14,705 A breakdown of the ALL and the loan portfolio by loan category at June 30, 2019 and December 31, 2018 follows (dollars in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total June 30, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,922 $ 1,142 $ 1,733 $ 5,348 $ 166 $ 422 $ 12,733 Individually evaluated for impairment — — — 170 — — 170 Acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,922 $ 1,142 $ 1,733 $ 5,518 $ 166 $ 422 $ 12,903 Loans: Collectively evaluated for impairment $ 593,463 $ 254,144 $ 123,777 $ 403,427 $ 26,665 $ 35,412 $ 1,436,888 Individually evaluated for impairment 1,238 213 117 616 8 — 2,192 Acquired with deteriorated credit quality 111 686 7 702 31 — 1,537 Balances, end of period $ 594,812 $ 255,043 $ 123,901 $ 404,745 $ 26,704 $ 35,412 $ 1,440,617 December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Individually evaluated for impairment — — — — — — — Acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Loans: Collectively evaluated for impairment $ 549,055 $ 252,640 $ 174,662 $ 403,054 $ 25,584 $ 20,901 $ 1,425,896 Individually evaluated for impairment 1,278 183 — 817 — — 2,278 Acquired with deteriorated credit quality 113 739 8 729 31 — 1,620 Balances, end of period $ 550,446 $ 253,562 $ 174,670 $ 404,600 $ 25,615 $ 20,901 $ 1,429,794 The following table presents the allocation of the ALL for each respective loan category with the corresponding percentage of the ALL in each category to total loans, net of deferred fees as of June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Amount Percent of total loans Amount Percent of total loans Commercial real estate $ 3,922 0.27 % $ 3,309 0.23 % Consumer real estate 1,142 0.08 1,005 0.07 Construction and land development 1,733 0.12 2,431 0.17 Commercial and industrial 5,518 0.39 5,036 0.35 Consumer 166 0.01 105 0.01 Other 422 0.03 227 0.02 Total allowance for loan losses $ 12,903 0.90 % $ 12,113 0.85 % The following table presents the Company’s impaired loans that were evaluated for specific loss allowance as of June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded: Commercial real estate $ 1,349 $ 1,416 $ — $ 1,391 $ 1,775 $ — Consumer real estate 899 1,307 — 922 1,204 — Construction and land development 124 151 — 8 18 — Commercial and industrial 704 1,478 — 1,546 6,350 — Consumer 39 68 — 31 56 — Other — — — — — — Subtotal 3,115 4,420 — 3,898 9,403 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial 614 4,744 170 — — — Consumer — — — — — — Other — — — — — — Subtotal 614 4,744 170 — — — Total $ 3,729 $ 9,164 $ 170 $ 3,898 $ 9,403 $ — The following table presents information related to the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 1,356 $ 19 $ 1,181 $ 15 $ 1,365 $ 35 $ 1,189 $ 25 Consumer real estate 916 4 — — 917 4 — — Construction and land development 128 1 — — 128 1 — — Commercial and industrial 709 19 — — 709 19 — — Consumer 44 — — — 44 — — — Other — — — — — — — — Subtotal 3,153 43 1,181 15 3,163 59 1,189 25 With an allowance recorded: Commercial real estate — — — — — — — — Consumer real estate — — — — — — — — Construction and land development — — — — — — — — Commercial and industrial 732 — 5,425 31 760 — 5,345 118 Consumer — — — — — — — — Other — — — — — — — — Subtotal 732 — 5,425 31 760 — 5,345 118 Total $ 3,885 $ 43 $ 6,606 $ 46 $ 3,923 $ 59 $ 6,534 $ 143 Interest income recognized on a cash basis for impaired loans amounted to $15,000 and $25,000 for the three and six months ended June 30, 2018. No interest income was recognized on a cash basis for impaired loans during the three or six months ended June 30, 2019. The following table presents the aging of the recorded investment in past-due loans as of June 30, 2019 and December 31, 2018 by class of loans (dollars in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total June 30, 2019 Commercial real estate $ — $ 1,307 $ — $ 1,307 $ 593,505 $ 594,812 Consumer real estate 378 947 733 2,058 252,985 255,043 Construction and land development — 51 — 51 123,850 123,901 Commercial and industrial 89 271 614 974 403,771 404,745 Consumer 161 29 54 245 26,459 26,704 Other — — — — 35,412 35,412 Total $ 628 $ 2,605 $ 1,402 $ 4,635 $ 1,435,982 $ 1,440,617 December 31, 2018 Commercial real estate $ 300 $ 227 $ — $ 527 $ 549,919 $ 550,446 Consumer real estate 69 75 775 919 252,643 253,562 Construction and land development — — — — 174,670 174,670 Commercial and industrial 54 — — 54 404,546 404,600 Consumer 52 — 43 95 25,520 25,615 Other — — — — 20,901 20,901 Total $ 475 $ 302 $ 818 $ 1,595 $ 1,428,199 $ 1,429,794 The following table presents the recorded investment in non-accrual loans, past due loans over 89 days outstanding and accruing and troubled debt restructurings (“TDR”) by class of loans as of June 30, 2019 and December 31, 2018 (dollars in thousands): Non-Accrual Past Due Over 89 Days and Accruing Troubled Debt Restructurings June 30, 2019 Commercial real estate $ — $ — $ 1,238 Consumer real estate 676 278 — Construction and land development 124 — — Commercial and industrial 616 — — Consumer 27 24 — Other — — — Total $ 1,443 $ 302 $ 1,238 December 31, 2018 Commercial real estate $ — $ — $ 1,391 Consumer real estate 1,187 214 — Construction and land development 19 — — Commercial and industrial 817 — — Consumer 55 — — Other — — — Total $ 2,078 $ 214 $ 1,391 As of June 30, 2019 and December 31, 2018, all loans classified as nonperforming were deemed to be impaired. As of June 30, 2019 and December 31, 2018, the Company had a recorded investment in TDR of $1.2 million and $1.4 million, respectively. The Company had no specific allowance for those loans at June 30, 2019 or December 31, 2018 and there were no commitments to lend additional amounts. Loans accounted for as TDR include modifications from original terms such as those due to bankruptcy proceedings, certain modifications of amortization periods or extended suspension of principal payments due to customer financial difficulties. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s loan policy. Loans accounted for as TDR are individually evaluated for impairment. There were no new TDR identified during the three or six months ended June 30, 2019 or 2018. There were no TDR for which there was a payment default within twelve months following the modification during the three or six months ended June 30, 2019 or 2018. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. Acquired Loans The following table presents changes in the carrying value of purchased credit impaired (“PCI”) loans (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Balance at beginning of period $ 1,608 $ 1,620 Change due to payments received and accretion (71 ) (83 ) Change due to loan charge-offs — — Other — — Balance at end of period $ 1,537 $ 1,537 The following table presents changes in the accretable yield for PCI loans (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Balance at beginning of period $ 438 $ 440 Accretion (33 ) (45 ) Reclassification from (to) nonaccretable difference — — Other, net 10 Balance at end of period $ 405 $ 405 PCI loans had no impact on the ALL for the three or six months ended June 30, 2019 or 2018. |
Premises and Equipment
Premises and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 4 – PREMISES AND EQUIPMENT The Company leases certain premises and equipment under operating leases. At June 30, 2019, the Company had lease liabilities totaling $12.9 million and right-of-use assets totaling $12.2 million related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At June 30, 2019, the weighted average remaining lease term for operating leases was 11.1 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.53%. Lease costs were as follows (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease cost $ 455 $ 937 Short-term lease cost — — Variable least cost — — Total lease cost $ 455 $ 937 Rent expense for the three and six months ended June 30, 2018, prior to the adoption of ASU 2016-02 was $415,000 and $809,000, respectively. There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the three or six months ended June 30, 2019 or 2018. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows (in thousands): June 30, 2019 Lease payments due: Within one year $ 1,536 After one but within two years 1,553 After two but within three years 1,517 After three but within four years 1,457 After four but within five years 1,221 After five years 8,267 Total undiscounted cash flows 15,551 Discount on cash flows (2,662 ) Total lease liability $ 12,889 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 6 Months Ended |
Jun. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | NOTE 5 – FEDERAL HOME LOAN BANK ADVANCES The Company had outstanding borrowings totaling of $10.0 million and $125.0 million at June 30, 2019 and December 31, 2018, respectively, via various advances. These advances are non-callable; interest payments are due monthly, with principal due at maturity. The following is a summary of the contractual maturities and average effective rates of outstanding advances (dollars in thousands): June 30, 2019 December 31, 2018 Year Amount Interest Rates Amount Interest Rates 2019 $ — — $ 125,000 2.48 % 2020 10,000 2.42 % — — 2021 — — — — 2022 — — — — 2023 — — — — Thereafter — — — — Total $ 10,000 2.42 % $ 125,000 2.48 % Advances from the FHLB are collateralized by investment securities with a market value of $4.1 million, FHLB stock and certain commercial and residential real estate mortgage loans totaling $728.5 million under a blanket mortgage collateral agreement. At June 30, 2019, the amount of available credit from the FHLB totaled $150.7 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 6 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2019 and 2018 (dollars in thousands): Unrealized Gains Unrealized Gains and and Losses Losses on Losses on on Available Securities Cash Flow for Sale Transferred to Hedges Securities Held to Maturity Total Six Months Ended June 30, 2019 Beginning Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) Other comprehensive income (loss) before reclassification, net of tax (205 ) 4,140 — 3,935 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (353 ) (80 ) — (433 ) Net current period other comprehensive income (loss) (558 ) 4,060 — 3,502 Ending Balance $ (3,194 ) $ 3,380 $ — $ 186 Six Months Ended June 30, 2018 Beginning Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) Other comprehensive income (loss) before reclassification, net of tax 1,288 (3,643 ) 20 (2,335 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (435 ) 2 (10 ) (443 ) Net current period other comprehensive income (loss) 853 (3,641 ) 10 (2,778 ) Ending Balance $ (2,826 ) $ (2,479 ) $ — $ (5,305 ) The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Affected Line Item Details about Accumulated Other Three Months Ended June 30, Six Months Ended June 30, in the Statement Where Comprehensive Income (Loss) Components 2019 2018 2019 2018 Net Income is Presented Unrealized losses on cash flow hedges $ (114 ) $ (111 ) $ (224 ) $ (218 ) Interest expense - money market (51 ) (113 ) (138 ) (257 ) Interest expense - Federal Home Loan Bank advances — 16 9 40 Income tax benefit $ (165 ) $ (208 ) $ (353 ) $ (435 ) Net of tax Unrealized gains (losses) on available- for-sale securities $ (121 ) $ 3 $ (108 ) $ 3 Net gain (loss) on sale of securities 32 (1 ) 28 (1 ) Income tax benefit (expense) $ (89 ) $ 2 $ (80 ) $ 2 Net of tax Unrealized losses on securities transferred to held-to-maturity $ — $ — $ — $ (14 ) Interest income - securities — — — 4 Income tax benefit $ — $ — $ — $ (10 ) Net of tax |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 – INCOME TAXES The Company’s effective tax rate for the three and six months ended June 30, 2019 was 24.0% and 23.1% compared to 15.9% and 14.6% for the three and six months ended June 30, 2018. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions, including income tax consequences. In addition to other changes, the guidance changes the accounting for excess tax benefits and tax deficiencies from generally being recognized in additional paid-in capital to recognition as income tax expense or benefit in the period they occur. The Company adopted the new guidance in the first quarter of 2017. As a result, the Company’s income tax expense was increased by $2,000 and decreased by $31,000 for the three and six months ended June 30, 2019, respectively, and decreased by $277,000 and $640,000 for the three and six months ended June 30, 2018, respectively. The effective tax rate compared favorably to the statutory federal rate of 21% and Tennessee excise tax rate of 6.5% primarily due to investments in qualified municipal securities, company owned life insurance, state tax credits, net of the effect of certain non-deductible expenses and the recognition of excess tax benefits related to stock compensation. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the balance sheet. The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of June 30, 2019 and December 31, 2018 (dollars in thousands): Contract or notional amount June 30, 2019 December 31, 2018 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 702,007 $ 707,675 Standby letters of credit 11,124 12,273 Total $ 713,131 $ 719,948 The Company is party to litigation and claims arising in the normal course of business. Management believes that the liabilities, if any, arising from such litigation and claims as of June 30, 2019, will not have a material impact on the financial statements of the Company. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 9 – DERIVATIVES The Company utilizes derivative financial instruments, interest rate swaps and mortgage banking related derivatives, as part of its ongoing efforts to manage its interest rate risk exposure as well as the exposure for its customers. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as Cash Flow Hedges There were no interest rate swaps designated as cash flow hedges as of June 30, 2019. Forward starting interest rate swaps with notional amounts totaling $20 million as of December 31, 2018 were designated as cash flow hedges of certain liabilities and were determined to be fully effective during all periods presented. As such, no amount of ineffectiveness was included in net income. Therefore, the aggregate fair value of the swaps is recorded in other liabilities with changes in fair value recorded in other comprehensive income. The Company terminated an interest rate swap during the second quarter of 2019 with a notional amount of $20 million, which resulted in a termination fee of $1.5 million. Cash flow swaps that have been terminated resulting in cash settlement equal to previously unrealized gains or losses are included in accumulated other comprehensive income and are being amortized to net income over the remaining contractual terms of the swaps. Summary information about the interest-rate swaps designated as cash flow hedges was as follows (dollars in thousands): June 30, 2019 December 31, 2018 Notional amounts $ — $ 20,000 Weighted average pay rates — 3.54 % Weighted average receive rates — 3 month LIBOR Weighted average maturity — 4.5 years Fair value $ — $ (836 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ — $ (617 ) Pursuant to its interest rate swap agreements, the Company pledged collateral to the counterparties in the form of investment securities with a market value of $1.9 million at June 30, 2019. There was no collateral posted from the counterparties to the Company as of June 30, 2019. Other Interest Rate Swaps The Company also enters into swaps to facilitate customer transactions and meet their financing needs. Upon entering into these transactions the Company enters into offsetting positions with large U.S. financial institutions in order to minimize risk to the Company. A summary of the Company’s customer related interest rate swaps was as follows (dollars in thousands): June 30, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 27,940 $ (741 ) $ 29,126 $ 24 Pay variable/receive fixed swaps 27,940 741 29,126 (24 ) Total $ 55,880 $ — $ 58,252 $ — Mortgage Banking Derivatives The Company enters into various derivative agreements with customers in the form of interest-rate lock commitments which are commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The derivatives are valued using a model that utilizes market interest rates and other unobservable inputs. Changes in the fair value of these commitments due to fluctuations in interest rates that are to be originated to our loans held for sale portfolio are economically hedged through the use of forward sale commitments of mortgage-backed securities. The gains and losses arising from this derivative activity are reflected in current period earnings under mortgage banking income. Interest rate lock commitments are valued using a model with significant unobservable market parameters. Forward sale commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable. The net gains (losses) relating to mortgage banking derivative instruments included in mortgage banking income were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Mortgage loan interest rate lock commitments $ 592 $ 592 Mortgage-backed securities forward sales commitments (353 ) (353 ) Total $ 239 $ 239 There were no gains (losses) relating to mortgage banking derivative instruments for the three or six months ended June 30, 2018. The amount and fair value of mortgage banking derivatives included in the consolidated balance sheets was as follows (dollars in thousands): June 30, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Included in other assets: Mortgage loan interest rate lock commitments $ 52,100 $ 592 $ — $ — Included in other liabilities: Mortgage-backed securities forward sales commitments $ 49,750 $ (278 ) $ — $ — |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Restricted Shares | NOTE 10 - STOCK OPTIONS AND RESTRICTED SHARES During 2008, the board of directors of the Bank approved the CapStar Bank 2008 Stock Incentive Plan. Following the formation of CapStar Financial Holdings, Inc. in 2016, and in connection with the Share Exchange, the outstanding awards of restricted stock and stock options under the CapStar Bank 2008 Stock Incentive Plan were exchanged for similar awards of restricted stock and stock options issued by CapStar Financial Holdings, Inc. under the CapStar Financial Holdings, Inc. Stock Incentive Plan (the “Plan”), which the board of directors adopted in 2016. The Stock Incentive Plan provides for the grant of stock-based incentives, including stock options, restricted stock units, performance awards and restricted stock, to employees, directors and service providers that are subject to forfeiture until vesting conditions have been satisfied by the award recipient under the terms of the award. The Plan is intended to help align the interests of employees and our shareholders and reward our employees for improved Company performance. The Plan reserved 1,569,475 shares of stock for issuance of stock incentives. In April 2018 the board of directors reserved an additional 400,000 shares of stock for issuance of stock incentives. Stock incentives include both restricted share and stock option grants. Total shares issuable under the plan were 354,518 at June 30, 2019. The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation expense before income taxes $ 340 $ 325 $ 684 $ 630 Less: deferred tax benefit (89 ) (85 ) (179 ) (165 ) Reduction of net income $ 251 $ 240 $ 505 $ 465 Restricted Shares Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the issue date. The fair value of each restricted stock grant is based on valuations performed by independent consultants. The recipients have the right to vote and receive dividends but cannot sell, transfer, assign, pledge, hypothecate, or otherwise encumber the restricted stock until the shares have vested. Restricted shares fully vest on the third anniversary of the grant date. A summary of the changes in the Company’s nonvested restricted shares for the six months ended June 30, 2019 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 157,616 $ 17.00 Granted 30,183 15.91 Vested (55,650 ) 15.13 Forfeited (11,801 ) 17.73 Nonvested at end of period 120,348 $ 17.52 As of June 30, 2019, there was $2.6 million of unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.9 years. The total fair value of shares vested during the six months ended June 30, 2019 and 2018 was $0.9 million and $1.6 million. Stock Options Option awards are generally granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Option awards generally have a four year vesting period and a ten year contractual term. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the table below. Expected volatility is based on historical volatilities of the Company’s common stock. The expected term of options granted was calculated using the “simplified” method for plain vanilla options. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. There were no options granted in 2018. The Company granted 50,000 options during 2019. The fair value of options granted during 2019 was determined using the following weighted average assumptions as of the grant date. 2019 Dividend yield 1.35 % Expected term (in years) 6.50 Expected stock price volatility 29.55 % Risk-free interest rate 2.25 % A summary of the activity in stock options for the six months ended June 30, 2019 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 507,903 $ 8.66 Granted 50,000 14.84 Exercised (218,954 ) 6.68 Forfeited or expired — — Outstanding at end of period 338,949 $ 10.86 4.8 Fully vested and expected to vest 338,508 $ 10.85 4.8 Exercisable at end of period 282,699 $ 10.10 3.8 Information related to stock options during each year follows: 2019 2018 Intrinsic value of options exercised $ 2,007,300 $ 2,081,344 Cash received from option exercises 1,253,233 2,186,420 Tax benefit realized from option exercises 14,979 544,063 Weighted average fair value of options granted 5.35 — As of June 30, 2019, there was $0.3 million of unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.8 years. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 6 Months Ended |
Jun. 30, 2019 | |
Banking And Thrift [Abstract] | |
Regulatory Capital Requirements | NOTE 11 – REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to regulatory capital requirements administered by the Federal Reserve and the Bank is also subject to the regulatory capital requirements of the Tennessee Department of Financial Institutions. Failure to meet capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that could, in that event, have a material adverse effect on the institutions’ financial statements. The relevant regulations require the Company and the Bank to meet specific capital adequacy guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting principles. The capital classifications of the Company and the Bank are also subject to qualitative judgments by their regulators about components, risk weightings, and other factors. Those qualitative judgments could also affect the capital status of the Company and the Bank and the amount of dividends the Company and the Bank may distribute. The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of June 30, 2019, the Company and the Bank met all regulatory capital adequacy requirements to which they are subject. The Company’s and the Bank’s capital amounts and ratios as of June 30, 2019 and December 31, 2018 are presented in the following table (dollars in thousands). Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At June 30, 2019: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 228,302 13.29 % $ 137,394 8.00 % N/A N/A CapStar Bank 213,170 12.41 137,368 8.00 $ 171,710 10.00 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 215,220 12.53 103,046 6.00 N/A N/A CapStar Bank 200,088 11.65 103,026 6.00 137,368 8.00 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 206,220 12.01 77,284 4.50 N/A N/A CapStar Bank 183,588 10.69 77,270 4.50 111,612 6.50 Tier I capital to average assets: CapStar Financial Holdings, Inc. 215,220 11.01 78,224 4.00 N/A N/A CapStar Bank 200,088 10.24 78,186 4.00 97,733 5.00 At December 31, 2018: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 222,030 12.84 % $ 138,336 8.00 % N/A N/A CapStar Bank 201,972 11.68 138,294 8.00 $ 172,868 10.00 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 209,738 12.13 103,752 6.00 N/A N/A CapStar Bank 189,680 10.97 103,721 6.00 138,294 8.00 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 200,738 11.61 77,814 4.50 N/A N/A CapStar Bank 173,180 10.02 77,791 4.50 112,364 6.50 Tier I capital to average assets: CapStar Financial Holdings, Inc. 209,738 11.06 75,867 4.00 N/A N/A CapStar Bank 189,680 10.01 75,828 4.00 94,785 5.00 (1) For the calendar year 2019, the Company must maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 2.5% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12 – EARNINGS PER SHARE The following is a summary of the basic and diluted earnings per share calculation for the three and six months ended June 30, 2019 and 2018 (dollars in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Basic net income per share calculation: Numerator – Net income $ 5,756 $ 3,513 $ 10,535 $ 6,707 Denominator – Average common shares outstanding 17,663,992 11,845,822 17,723,286 11,755,535 Basic net income per share $ 0.33 $ 0.30 $ 0.59 $ 0.57 Diluted net income per share calculation: Numerator – Net income $ 5,756 $ 3,513 $ 10,535 $ 6,707 Denominator – Average common shares outstanding 17,663,992 11,845,822 17,723,286 11,755,535 Dilutive shares contingently issuable 986,714 1,221,401 1,017,036 1,266,209 Average diluted common shares outstanding 18,650,706 13,067,223 18,740,322 13,021,744 Diluted net income per share $ 0.31 $ 0.27 $ 0.56 $ 0.52 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 13 – FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Bank used the following methods and significant assumptions to estimate fair value: Investment Securities Other Real Estate Owned Loans Held For Sale Impaired Loans Derivatives-Interest Rate Swaps Derivatives-Mortgage Loan Interest Rate Lock Commitments Derivatives-Mortgage-Backed Securities Forward Sales Commitments Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Fair value measurements at June 30, 2019 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 6,477 $ — $ 6,477 $ — Obligations of states and political subdivisions 51,499 — 51,499 — Mortgage-backed securities-residential 124,840 — 124,840 — Asset-backed securities 3,299 — 3,299 — Other debt securities 8,842 — 8,842 — Loans held for sale 37,604 — 37,604 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 752 — 752 — Mortgage loan interest rate lock commitments 592 — — 592 Liabilities: Derivative liabilities: Non-hedging derivatives: Interest rate swaps - customer related (752 ) — (752 ) — Mortgage-backed securities forward sales commitments (278 ) — (278 ) — Fair value measurements at December 31, 2018 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 10,706 $ — $ 10,706 $ — Obligations of states and political subdivisions 61,926 — 61,926 — Mortgage-backed securities-residential 144,158 — 144,158 — Asset-backed securities 15,284 — 15,284 — Other debt securities 11,734 — 11,734 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 494 — 494 — Liabilities: Derivative liabilities: Cash flow hedges: Interest rate swaps - cash flow hedges (836 ) — (836 ) — Non-hedging derivatives: Interest rate swaps - customer related (494 ) — (494 ) — The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2019 and 2018 (dollars in thousands): Mortgage Loan Interest Rate Lock Commitments 2019 2018 Balance of recurring Level 3 assets at January 1st $ — $ — Total gains or losses for the period: Include in mortgage banking income 592 — Balance of recurring Level 3 assets at June 30th $ 592 $ — The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2019 (dollars in thousands). There were no Level 3 fair value measurements at December 31, 2018. Range Fair Valuation (Weighted- June 30, 2019 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 592 Consensus pricing Origination pull-through rate 68% - 96% (80%) Assets measured at fair value on a nonrecurring basis are summarized below (dollars in thousands): There were no assets measured at fair value on a nonrecurring basis at December 31, 2018. Fair value measurements at June 30, 2019 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Commercial and industrial $ 444 — — 444 The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis at June 30, 2019 (dollars in thousands): Range Fair Valuation (Weighted- June 30, 2019 Value Technique(s) Unobservable Input(s) Average) Impaired loans: Commercial and industrial $ 444 Sales Comparison approach Appraisal discounts 25% Fair Value of Financial Instruments The carrying value and estimated fair values of the Bank’s financial instruments at June 30, 2019 and December 31, 2018 were as follows (dollars in thousands): June 30, 2019 December 31, 2018 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 156,085 $ 156,085 $ 94,681 $ 94,681 Level 1 Federal funds sold — — 10,762 10,762 Level 1 Securities available-for-sale 194,957 194,957 243,808 243,808 Level 2 Securities held-to-maturity 3,721 3,820 3,734 3,785 Level 2 Loans held for sale 89,629 90,800 57,618 58,596 Level 2 Restricted equity securities 14,150 N/A 12,038 N/A N/A Loans 1,440,617 1,435,130 1,429,794 1,442,082 Level 3 Accrued interest receivable 6,045 6,045 5,964 5,964 Level 2 Other assets 35,157 35,157 34,489 34,489 Level 2 / Level 3 Financial liabilities: Deposits 1,722,770 1,723,123 1,570,008 1,572,880 Level 3 Federal Home Loan Bank advances 10,000 10,000 125,000 126,548 Level 2 Other liabilities 1,606 1,606 2,753 2,753 Level 3 The methods and assumptions, not previously presented, used to estimate fair values are described as follows: (a) Cash and Due from Banks, Interest-Bearing Deposits in Financial Institutions For these short‑term instruments, the carrying amount is a reasonable estimate of fair value. (b) Federal Funds Sold Federal funds sold clear on a daily basis. For this reason, the carrying amount is a reasonable estimate of fair value. (c) Restricted Equity Securities It is not practical to determine the fair value of restricted securities due to restrictions placed on their transferability. (d) Loans In accordance with the prospective adoption of ASU 2016-01, the fair value of loans was measured using an exit price notion. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. (e) Accrued Interest Receivable The carrying amounts of accrued interest approximate fair value. (f) Other Assets Included in other assets are bank owned life insurance and certain interest rate swap agreements. The fair values of interest rate swap agreements are based on independent pricing services that utilize pricing models with observable market inputs. For bank owned life insurance, the carrying amount is based on the cash surrender value and is a reasonable estimate of fair value. (g) Deposits The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounted cash flow models, using current market interest rates offered on certificates with similar remaining maturities. (h) Federal Home Loan Bank Advances The fair value of fixed rate Federal Home Loan Bank Advances is estimated using discounted cash flow models, using current market interest rates offered on certificates, advances and other borrowings with similar remaining maturities. (i) Other Liabilities Included in other liabilities are accrued interest payable and certain interest rate swap agreements. The fair values of interest rate swap agreements are based on independent pricing services that utilize pricing models with observable market inputs. The carrying amounts of accrued interest approximate fair value. ( j ) Off-Balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. ( k ) Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on estimating on and off‑balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, fixed assets are not considered financial instruments and their value has not been incorporated into the fair value estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements as of and for the period ended June 30, 2019 include CapStar Financial Holdings, Inc. and its wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. These unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio, loans held for sale, derivative assets and liabilities, deferred tax assets and estimated liabilities. |
Loans Held For Sale and Fair Value Option | Loans Held For Sale and Fair Value Option The Company classifies loans as loans held for sale when originated with the intent to sell. As of April 1, 2019, the Company elected the fair value option for all residential mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other loans held for sale primarily because they are not economically hedged using derivative instruments. The fair value of residential mortgage loans originated with the intent to sell is based on traded market prices of similar assets. Other loans held for sale that are recorded at lower of cost or fair value may be carried at fair value on a nonrecurring basis when the fair value is less than cost. For further information, see Note 13 - Fair Value. The Company does not securitize mortgage loans. If the Company sells loans with servicing rights retained, the carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Fair values of residential mortgage loans held for sale are based on traded market prices of similar assets. The changes in fair value are recorded as a component of mortgage banking income and included gains of $0.9 million for the three and six months ended June 30, 2019. There were no loans held for sale recorded at fair value as of December 31, 2018. The following table summarizes the difference between the fair value and the aggregate unpaid principal balance for residential real estate loans held for sale as of June 30, 2019 (dollars in thousands): Fair Value Aggregate Unpaid Principal Balance Difference June 30, 2019 Residential mortgage loans held for sale $ 37,604 $ 36,692 $ 912 No residential mortgage loans held for sale were greater than 89 days past due or on nonaccrual status as of June 30, 2019 or December 31, 2018. |
Subsequent Events | Subsequent Events Accounting Standards Codification (“ASC”) 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all events or transactions that occurred after June 30, 2019 through the date of the issued financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Difference Between the Fair Value and Aggregate Unpaid Principal Balance | The following table summarizes the difference between the fair value and the aggregate unpaid principal balance for residential real estate loans held for sale as of June 30, 2019 (dollars in thousands): Fair Value Aggregate Unpaid Principal Balance Difference June 30, 2019 Residential mortgage loans held for sale $ 37,604 $ 36,692 $ 912 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities | The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2019 and December 31, 2018 are summarized as follows (dollars in thousands): June 30, 2019 December 31, 2018 Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Securities available-for-sale: U. S. government agency securities $ 6,491 $ 41 $ (55 ) $ 6,477 $ 11,053 $ — $ (347 ) $ 10,706 State and municipal securities 49,911 1,665 (77 ) 51,499 62,142 765 (981 ) 61,926 Mortgage-backed securities 124,073 1,552 (785 ) 124,840 146,547 776 (3,165 ) 144,158 Asset-backed securities 3,402 — (103 ) 3,299 15,437 4 (157 ) 15,284 Other debt securities 8,816 68 (42 ) 8,842 11,863 71 (200 ) 11,734 Total $ 192,693 $ 3,326 $ (1,062 ) $ 194,957 $ 247,042 $ 1,616 $ (4,850 ) $ 243,808 Securities held-to-maturity: State and municipal securities $ 3,721 $ 99 $ — $ 3,820 $ 3,734 $ 54 $ (3 ) $ 3,785 Total $ 3,721 $ 99 $ — $ 3,820 $ 3,734 $ 54 $ (3 ) $ 3,785 |
Summary of Securities with Unrealized Losses and Length of Time Continuous Loss Positions | Security fair values are established by an independent pricing service as of the dates indicated. The difference between amortized cost and fair value reflects current interest rates and represents the potential gain (loss) had the portfolio been liquidated on those dates. Security gains (losses) are realized only in the event of dispositions prior to maturity or other-than-temporary impairment. Securities with unrealized losses as of June 30, 2019 and December 31, 2018, and the length of time they were in continuous loss positions as of such dates are as follows (dollars in thousands): Less than 12 months 12 months or more Total June 30, 2019 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ — $ — $ 3,715 $ (55 ) $ 3,715 $ (55 ) State and municipal securities — — 6,340 (77 ) 6,340 (77 ) Mortgage-backed securities 3,002 (7 ) 61,711 (778 ) 64,713 (785 ) Asset-backed securities 3,299 (103 ) — — 3,299 (103 ) Other debt securities 985 (15 ) 2,489 (27 ) 3,474 (42 ) Total temporarily impaired securities $ 7,286 $ (125 ) $ 74,255 $ (937 ) $ 81,541 $ (1,062 ) December 31, 2018 U. S. government agency securities $ — $ — $ 10,706 $ (347 ) $ 10,706 $ (347 ) State and municipal securities 13,455 (212 ) 17,376 (772 ) 30,831 (984 ) Mortgage-backed securities 7,075 (17 ) 87,232 (3,148 ) 94,307 (3,165 ) Asset-backed securities 8,262 (145 ) 2,439 (12 ) 10,701 (157 ) Other debt securities 5,362 (200 ) — — 5,362 (200 ) Total temporarily impaired securities $ 34,154 $ (574 ) $ 117,753 $ (4,279 ) $ 151,907 $ (4,853 ) |
Summary of Sale of Debt and Equity Securities | Results from sales of debt and equity securities were as follows (dollars in thousands): Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Proceeds $ 54,133 $ 5,778 Gross gains 370 107 Gross losses (478 ) (104 ) |
Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of securities at June 30, 2019, by contractual maturity, are shown below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized cost Estimated fair value Amortized cost Estimated fair value Due in less than one year $ 6,794 $ 6,870 $ 998 $ 999 Due one to five years 24,757 25,289 2,723 2,821 Due five to ten years 30,966 32,009 — — Due beyond ten years 2,701 2,650 — — Mortgage-backed securities 124,073 124,840 — — Asset-backed securities 3,402 3,299 — — Total $ 192,693 $ 194,957 $ 3,721 $ 3,820 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Loan Portfolio | A summary of the loan portfolio as of June 30, 2019 and December 31, 2018 follows (dollars in thousands): June 30, 2019 December 31, 2018 Commercial real estate $ 594,812 $ 550,446 Consumer real estate 255,043 253,562 Construction and land development 123,901 174,670 Commercial and industrial 404,745 404,600 Consumer 26,704 25,615 Other 35,412 20,901 Total 1,440,617 1,429,794 Allowance for loan losses (12,903 ) (12,113 ) Total loans, net $ 1,427,714 $ 1,417,681 |
Summary of Loan Balance by Category as well as Risk Rating | The following tables present the loan balances by category as well as risk rating (dollars in thousands): Non-impaired Loans June 30, 2019 Pass/Watch Special Mention Substandard Total Non-impaired Total Loans Total Commercial real estate $ 592,071 $ 164 $ 1,228 $ 593,463 $ 1,349 $ 594,812 Consumer real estate 250,647 1,677 1,820 254,144 899 255,043 Construction and land development 123,710 50 17 123,777 124 123,901 Commercial and industrial 383,040 10,856 9,531 403,427 1,318 404,745 Consumer 26,661 — 4 26,665 39 26,704 Other 35,412 — — 35,412 — 35,412 Total $ 1,411,541 $ 12,747 $ 12,600 $ 1,436,888 $ 3,729 $ 1,440,617 December 31, 2018 Commercial real estate $ 547,616 $ 177 $ 1,262 $ 549,055 $ 1,391 $ 550,446 Consumer real estate 249,273 1,676 1,691 252,640 922 253,562 Construction and land development 174,591 52 19 174,662 8 174,670 Commercial and industrial 388,719 7,790 6,545 403,054 1,546 404,600 Consumer 25,556 1 27 25,584 31 25,615 Other 20,901 — — 20,901 — 20,901 Total $ 1,406,656 $ 9,696 $ 9,544 $ 1,425,896 $ 3,898 $ 1,429,794 |
Summary of Changes and Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category | The following tables detail the changes in the ALL for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Three Months Ended June 30, 2019 Balance, beginning of period $ 3,514 $ 1,017 $ 2,366 $ 5,524 $ 139 $ 399 $ 12,959 Charged-off loans — — — (26 ) (41 ) (51 ) (118 ) Recoveries 6 13 — 14 22 7 62 Provision for loan losses 402 112 (633 ) 6 46 67 — Balance, end of period $ 3,922 $ 1,142 $ 1,733 $ 5,518 $ 166 $ 422 $ 12,903 Three Months Ended June 30, 2018 Balance, beginning of period $ 3,512 $ 1,036 $ 1,742 $ 7,798 $ 122 $ 353 $ 14,563 Charged-off loans — — (79 ) (12 ) — (91 ) Recoveries 6 1 — 53 4 — 64 Provision for loan losses 33 20 22 7 6 81 169 Balance, end of period $ 3,551 $ 1,057 $ 1,764 $ 7,779 $ 120 $ 434 $ 14,705 Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Six Months Ended June 30, 2019 Balance, beginning of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Charged-off loans — — — (26 ) (78 ) (96 ) (200 ) Recoveries 12 16 16 41 19 104 Provision for loan losses 601 121 (698 ) 492 98 272 886 Balance, end of period $ 3,922 $ 1,142 $ 1,733 $ 5,518 $ 166 $ 422 $ 12,903 Six Months Ended June 30, 2018 Balance, beginning of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Charged-off loans — — — (226 ) (25 ) — (251 ) Recoveries 10 2 — 326 51 — 389 Provision for loan losses 217 (8 ) 136 470 3 28 846 Balance, end of period $ 3,551 $ 1,057 $ 1,764 $ 7,779 $ 120 $ 434 $ 14,705 A breakdown of the ALL and the loan portfolio by loan category at June 30, 2019 and December 31, 2018 follows (dollars in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total June 30, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,922 $ 1,142 $ 1,733 $ 5,348 $ 166 $ 422 $ 12,733 Individually evaluated for impairment — — — 170 — — 170 Acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,922 $ 1,142 $ 1,733 $ 5,518 $ 166 $ 422 $ 12,903 Loans: Collectively evaluated for impairment $ 593,463 $ 254,144 $ 123,777 $ 403,427 $ 26,665 $ 35,412 $ 1,436,888 Individually evaluated for impairment 1,238 213 117 616 8 — 2,192 Acquired with deteriorated credit quality 111 686 7 702 31 — 1,537 Balances, end of period $ 594,812 $ 255,043 $ 123,901 $ 404,745 $ 26,704 $ 35,412 $ 1,440,617 December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Individually evaluated for impairment — — — — — — — Acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Loans: Collectively evaluated for impairment $ 549,055 $ 252,640 $ 174,662 $ 403,054 $ 25,584 $ 20,901 $ 1,425,896 Individually evaluated for impairment 1,278 183 — 817 — — 2,278 Acquired with deteriorated credit quality 113 739 8 729 31 — 1,620 Balances, end of period $ 550,446 $ 253,562 $ 174,670 $ 404,600 $ 25,615 $ 20,901 $ 1,429,794 |
Allocation of ALL with Corresponding Percentage of ALL in Each Category to Total Loans, Net of Deferred Fee | The following table presents the allocation of the ALL for each respective loan category with the corresponding percentage of the ALL in each category to total loans, net of deferred fees as of June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Amount Percent of total loans Amount Percent of total loans Commercial real estate $ 3,922 0.27 % $ 3,309 0.23 % Consumer real estate 1,142 0.08 1,005 0.07 Construction and land development 1,733 0.12 2,431 0.17 Commercial and industrial 5,518 0.39 5,036 0.35 Consumer 166 0.01 105 0.01 Other 422 0.03 227 0.02 Total allowance for loan losses $ 12,903 0.90 % $ 12,113 0.85 % |
Summary of Impaired Loans | The following table presents the Company’s impaired loans that were evaluated for specific loss allowance as of June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded: Commercial real estate $ 1,349 $ 1,416 $ — $ 1,391 $ 1,775 $ — Consumer real estate 899 1,307 — 922 1,204 — Construction and land development 124 151 — 8 18 — Commercial and industrial 704 1,478 — 1,546 6,350 — Consumer 39 68 — 31 56 — Other — — — — — — Subtotal 3,115 4,420 — 3,898 9,403 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial 614 4,744 170 — — — Consumer — — — — — — Other — — — — — — Subtotal 614 4,744 170 — — — Total $ 3,729 $ 9,164 $ 170 $ 3,898 $ 9,403 $ — The following table presents information related to the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 1,356 $ 19 $ 1,181 $ 15 $ 1,365 $ 35 $ 1,189 $ 25 Consumer real estate 916 4 — — 917 4 — — Construction and land development 128 1 — — 128 1 — — Commercial and industrial 709 19 — — 709 19 — — Consumer 44 — — — 44 — — — Other — — — — — — — — Subtotal 3,153 43 1,181 15 3,163 59 1,189 25 With an allowance recorded: Commercial real estate — — — — — — — — Consumer real estate — — — — — — — — Construction and land development — — — — — — — — Commercial and industrial 732 — 5,425 31 760 — 5,345 118 Consumer — — — — — — — — Other — — — — — — — — Subtotal 732 — 5,425 31 760 — 5,345 118 Total $ 3,885 $ 43 $ 6,606 $ 46 $ 3,923 $ 59 $ 6,534 $ 143 |
Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans | The following table presents the aging of the recorded investment in past-due loans as of June 30, 2019 and December 31, 2018 by class of loans (dollars in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total June 30, 2019 Commercial real estate $ — $ 1,307 $ — $ 1,307 $ 593,505 $ 594,812 Consumer real estate 378 947 733 2,058 252,985 255,043 Construction and land development — 51 — 51 123,850 123,901 Commercial and industrial 89 271 614 974 403,771 404,745 Consumer 161 29 54 245 26,459 26,704 Other — — — — 35,412 35,412 Total $ 628 $ 2,605 $ 1,402 $ 4,635 $ 1,435,982 $ 1,440,617 December 31, 2018 Commercial real estate $ 300 $ 227 $ — $ 527 $ 549,919 $ 550,446 Consumer real estate 69 75 775 919 252,643 253,562 Construction and land development — — — — 174,670 174,670 Commercial and industrial 54 — — 54 404,546 404,600 Consumer 52 — 43 95 25,520 25,615 Other — — — — 20,901 20,901 Total $ 475 $ 302 $ 818 $ 1,595 $ 1,428,199 $ 1,429,794 |
Schedule of Recorded In Non Accrual Loans, Past Due Loans over 89 Days Outstanding and Accruing and Troubled Debt Restructurings | The following table presents the recorded investment in non-accrual loans, past due loans over 89 days outstanding and accruing and troubled debt restructurings (“TDR”) by class of loans as of June 30, 2019 and December 31, 2018 (dollars in thousands): Non-Accrual Past Due Over 89 Days and Accruing Troubled Debt Restructurings June 30, 2019 Commercial real estate $ — $ — $ 1,238 Consumer real estate 676 278 — Construction and land development 124 — — Commercial and industrial 616 — — Consumer 27 24 — Other — — — Total $ 1,443 $ 302 $ 1,238 December 31, 2018 Commercial real estate $ — $ — $ 1,391 Consumer real estate 1,187 214 — Construction and land development 19 — — Commercial and industrial 817 — — Consumer 55 — — Other — — — Total $ 2,078 $ 214 $ 1,391 |
Schedule of activity in purchased credit impaired loans | The following table presents changes in the carrying value of purchased credit impaired (“PCI”) loans (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Balance at beginning of period $ 1,608 $ 1,620 Change due to payments received and accretion (71 ) (83 ) Change due to loan charge-offs — — Other — — Balance at end of period $ 1,537 $ 1,537 The following table presents changes in the accretable yield for PCI loans (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Balance at beginning of period $ 438 $ 440 Accretion (33 ) (45 ) Reclassification from (to) nonaccretable difference — — Other, net 10 Balance at end of period $ 405 $ 405 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Lease Costs | Lease costs were as follows (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease cost $ 455 $ 937 Short-term lease cost — — Variable least cost — — Total lease cost $ 455 $ 937 |
Maturity Analysis of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows (in thousands): June 30, 2019 Lease payments due: Within one year $ 1,536 After one but within two years 1,553 After two but within three years 1,517 After three but within four years 1,457 After four but within five years 1,221 After five years 8,267 Total undiscounted cash flows 15,551 Discount on cash flows (2,662 ) Total lease liability $ 12,889 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Summary of Contractual Maturities and Average Effective Rates of Outstanding Advances | The following is a summary of the contractual maturities and average effective rates of outstanding advances (dollars in thousands): June 30, 2019 December 31, 2018 Year Amount Interest Rates Amount Interest Rates 2019 $ — — $ 125,000 2.48 % 2020 10,000 2.42 % — — 2021 — — — — 2022 — — — — 2023 — — — — Thereafter — — — — Total $ 10,000 2.42 % $ 125,000 2.48 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax | The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2019 and 2018 (dollars in thousands): Unrealized Gains Unrealized Gains and and Losses Losses on Losses on on Available Securities Cash Flow for Sale Transferred to Hedges Securities Held to Maturity Total Six Months Ended June 30, 2019 Beginning Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) Other comprehensive income (loss) before reclassification, net of tax (205 ) 4,140 — 3,935 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (353 ) (80 ) — (433 ) Net current period other comprehensive income (loss) (558 ) 4,060 — 3,502 Ending Balance $ (3,194 ) $ 3,380 $ — $ 186 Six Months Ended June 30, 2018 Beginning Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) Other comprehensive income (loss) before reclassification, net of tax 1,288 (3,643 ) 20 (2,335 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (435 ) 2 (10 ) (443 ) Net current period other comprehensive income (loss) 853 (3,641 ) 10 (2,778 ) Ending Balance $ (2,826 ) $ (2,479 ) $ — $ (5,305 ) |
Summary of Significant Amounts Reclassified out off Accumulated Other Comprehensive Income (Loss) | The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Affected Line Item Details about Accumulated Other Three Months Ended June 30, Six Months Ended June 30, in the Statement Where Comprehensive Income (Loss) Components 2019 2018 2019 2018 Net Income is Presented Unrealized losses on cash flow hedges $ (114 ) $ (111 ) $ (224 ) $ (218 ) Interest expense - money market (51 ) (113 ) (138 ) (257 ) Interest expense - Federal Home Loan Bank advances — 16 9 40 Income tax benefit $ (165 ) $ (208 ) $ (353 ) $ (435 ) Net of tax Unrealized gains (losses) on available- for-sale securities $ (121 ) $ 3 $ (108 ) $ 3 Net gain (loss) on sale of securities 32 (1 ) 28 (1 ) Income tax benefit (expense) $ (89 ) $ 2 $ (80 ) $ 2 Net of tax Unrealized losses on securities transferred to held-to-maturity $ — $ — $ — $ (14 ) Interest income - securities — — — 4 Income tax benefit $ — $ — $ — $ (10 ) Net of tax |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Representing Credit Risk | The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of June 30, 2019 and December 31, 2018 (dollars in thousands): Contract or notional amount June 30, 2019 December 31, 2018 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 702,007 $ 707,675 Standby letters of credit 11,124 12,273 Total $ 713,131 $ 719,948 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Interest-Rate Swaps Designated as Cash Flow Hedges | Summary information about the interest-rate swaps designated as cash flow hedges was as follows (dollars in thousands): June 30, 2019 December 31, 2018 Notional amounts $ — $ 20,000 Weighted average pay rates — 3.54 % Weighted average receive rates — 3 month LIBOR Weighted average maturity — 4.5 years Fair value $ — $ (836 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ — $ (617 ) |
Summary of Customer Related Interest Rate Swaps | A summary of the Company’s customer related interest rate swaps was as follows (dollars in thousands): June 30, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 27,940 $ (741 ) $ 29,126 $ 24 Pay variable/receive fixed swaps 27,940 741 29,126 (24 ) Total $ 55,880 $ — $ 58,252 $ — |
Summary of Net Gains (Losses) Relating to Mortgage Banking Derivative Instruments Included in Mortgage Banking Income | The net gains (losses) relating to mortgage banking derivative instruments included in mortgage banking income were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Mortgage loan interest rate lock commitments $ 592 $ 592 Mortgage-backed securities forward sales commitments (353 ) (353 ) Total $ 239 $ 239 |
Summary of Amount and Fair Value of Mortgage Banking Derivative Instruments Included in Consolidated Balance Sheets | The amount and fair value of mortgage banking derivatives included in the consolidated balance sheets was as follows (dollars in thousands): June 30, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Included in other assets: Mortgage loan interest rate lock commitments $ 52,100 $ 592 $ — $ — Included in other liabilities: Mortgage-backed securities forward sales commitments $ 49,750 $ (278 ) $ — $ — |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Company Recognized Stock-Based Compensation Expense | The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation expense before income taxes $ 340 $ 325 $ 684 $ 630 Less: deferred tax benefit (89 ) (85 ) (179 ) (165 ) Reduction of net income $ 251 $ 240 $ 505 $ 465 |
Summary of Changes in Company's Nonvested Restricted Shares | A summary of the changes in the Company’s nonvested restricted shares for the six months ended June 30, 2019 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 157,616 $ 17.00 Granted 30,183 15.91 Vested (55,650 ) 15.13 Forfeited (11,801 ) 17.73 Nonvested at end of period 120,348 $ 17.52 |
Summary of Fair Value of Options Granted Using Weighted Average Assumptions | The fair value of options granted during 2019 was determined using the following weighted average assumptions as of the grant date. 2019 Dividend yield 1.35 % Expected term (in years) 6.50 Expected stock price volatility 29.55 % Risk-free interest rate 2.25 % |
Summary of Activity in Stock Options | A summary of the activity in stock options for the six months ended June 30, 2019 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 507,903 $ 8.66 Granted 50,000 14.84 Exercised (218,954 ) 6.68 Forfeited or expired — — Outstanding at end of period 338,949 $ 10.86 4.8 Fully vested and expected to vest 338,508 $ 10.85 4.8 Exercisable at end of period 282,699 $ 10.10 3.8 |
Information Related to Stock Options | Information related to stock options during each year follows: 2019 2018 Intrinsic value of options exercised $ 2,007,300 $ 2,081,344 Cash received from option exercises 1,253,233 2,186,420 Tax benefit realized from option exercises 14,979 544,063 Weighted average fair value of options granted 5.35 — |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Capital Amounts and Ratios | The Company’s and the Bank’s capital amounts and ratios as of June 30, 2019 and December 31, 2018 are presented in the following table (dollars in thousands). Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At June 30, 2019: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 228,302 13.29 % $ 137,394 8.00 % N/A N/A CapStar Bank 213,170 12.41 137,368 8.00 $ 171,710 10.00 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 215,220 12.53 103,046 6.00 N/A N/A CapStar Bank 200,088 11.65 103,026 6.00 137,368 8.00 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 206,220 12.01 77,284 4.50 N/A N/A CapStar Bank 183,588 10.69 77,270 4.50 111,612 6.50 Tier I capital to average assets: CapStar Financial Holdings, Inc. 215,220 11.01 78,224 4.00 N/A N/A CapStar Bank 200,088 10.24 78,186 4.00 97,733 5.00 At December 31, 2018: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 222,030 12.84 % $ 138,336 8.00 % N/A N/A CapStar Bank 201,972 11.68 138,294 8.00 $ 172,868 10.00 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 209,738 12.13 103,752 6.00 N/A N/A CapStar Bank 189,680 10.97 103,721 6.00 138,294 8.00 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 200,738 11.61 77,814 4.50 N/A N/A CapStar Bank 173,180 10.02 77,791 4.50 112,364 6.50 Tier I capital to average assets: CapStar Financial Holdings, Inc. 209,738 11.06 75,867 4.00 N/A N/A CapStar Bank 189,680 10.01 75,828 4.00 94,785 5.00 (1) For the calendar year 2019, the Company must maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 2.5% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | The following is a summary of the basic and diluted earnings per share calculation for the three and six months ended June 30, 2019 and 2018 (dollars in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Basic net income per share calculation: Numerator – Net income $ 5,756 $ 3,513 $ 10,535 $ 6,707 Denominator – Average common shares outstanding 17,663,992 11,845,822 17,723,286 11,755,535 Basic net income per share $ 0.33 $ 0.30 $ 0.59 $ 0.57 Diluted net income per share calculation: Numerator – Net income $ 5,756 $ 3,513 $ 10,535 $ 6,707 Denominator – Average common shares outstanding 17,663,992 11,845,822 17,723,286 11,755,535 Dilutive shares contingently issuable 986,714 1,221,401 1,017,036 1,266,209 Average diluted common shares outstanding 18,650,706 13,067,223 18,740,322 13,021,744 Diluted net income per share $ 0.31 $ 0.27 $ 0.56 $ 0.52 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Fair value measurements at June 30, 2019 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 6,477 $ — $ 6,477 $ — Obligations of states and political subdivisions 51,499 — 51,499 — Mortgage-backed securities-residential 124,840 — 124,840 — Asset-backed securities 3,299 — 3,299 — Other debt securities 8,842 — 8,842 — Loans held for sale 37,604 — 37,604 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 752 — 752 — Mortgage loan interest rate lock commitments 592 — — 592 Liabilities: Derivative liabilities: Non-hedging derivatives: Interest rate swaps - customer related (752 ) — (752 ) — Mortgage-backed securities forward sales commitments (278 ) — (278 ) — Fair value measurements at December 31, 2018 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 10,706 $ — $ 10,706 $ — Obligations of states and political subdivisions 61,926 — 61,926 — Mortgage-backed securities-residential 144,158 — 144,158 — Asset-backed securities 15,284 — 15,284 — Other debt securities 11,734 — 11,734 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 494 — 494 — Liabilities: Derivative liabilities: Cash flow hedges: Interest rate swaps - cash flow hedges (836 ) — (836 ) — Non-hedging derivatives: Interest rate swaps - customer related (494 ) — (494 ) — |
Reconciliation of Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2019 and 2018 (dollars in thousands): Mortgage Loan Interest Rate Lock Commitments 2019 2018 Balance of recurring Level 3 assets at January 1st $ — $ — Total gains or losses for the period: Include in mortgage banking income 592 — Balance of recurring Level 3 assets at June 30th $ 592 $ — |
Summary of Quantitative Information About Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis | The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2019 (dollars in thousands). There were no Level 3 fair value measurements at December 31, 2018. Range Fair Valuation (Weighted- June 30, 2019 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 592 Consensus pricing Origination pull-through rate 68% - 96% (80%) The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis at June 30, 2019 (dollars in thousands): Range Fair Valuation (Weighted- June 30, 2019 Value Technique(s) Unobservable Input(s) Average) Impaired loans: Commercial and industrial $ 444 Sales Comparison approach Appraisal discounts 25% |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are summarized below (dollars in thousands): There were no assets measured at fair value on a nonrecurring basis at December 31, 2018. Fair value measurements at June 30, 2019 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Commercial and industrial $ 444 — — 444 |
Summary of Carrying Value and Fair Values of the Bank's Financial Instruments | The carrying value and estimated fair values of the Bank’s financial instruments at June 30, 2019 and December 31, 2018 were as follows (dollars in thousands): June 30, 2019 December 31, 2018 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 156,085 $ 156,085 $ 94,681 $ 94,681 Level 1 Federal funds sold — — 10,762 10,762 Level 1 Securities available-for-sale 194,957 194,957 243,808 243,808 Level 2 Securities held-to-maturity 3,721 3,820 3,734 3,785 Level 2 Loans held for sale 89,629 90,800 57,618 58,596 Level 2 Restricted equity securities 14,150 N/A 12,038 N/A N/A Loans 1,440,617 1,435,130 1,429,794 1,442,082 Level 3 Accrued interest receivable 6,045 6,045 5,964 5,964 Level 2 Other assets 35,157 35,157 34,489 34,489 Level 2 / Level 3 Financial liabilities: Deposits 1,722,770 1,723,123 1,570,008 1,572,880 Level 3 Federal Home Loan Bank advances 10,000 10,000 125,000 126,548 Level 2 Other liabilities 1,606 1,606 2,753 2,753 Level 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - Residential mortgage loans held for sale - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Mortgage banking income | $ 900,000 | $ 900,000 | |
Residential mortgage loans held for sale | 37,604,000 | 37,604,000 | $ 0 |
Greater than 89 Days Past Due | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Mortgage loans past due over 89 days and nonaccrual | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Difference Between the Fair Value and Aggregate Unpaid Principal Balance (Details) - Residential mortgage loans held for sale - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 37,604,000 | $ 0 |
Aggregate Unpaid Principal Balance | 36,692,000 | |
Difference | $ 912,000 |
Securities - Summary of Fair Va
Securities - Summary of Fair Value of Available for Sale Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available for sale [Abstract] | ||
Amortized Cost | $ 192,693 | $ 247,042 |
Gross unrealized gains | 3,326 | 1,616 |
Gross unrealized (losses) | (1,062) | (4,850) |
Estimated fair value | 194,957 | 243,808 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 3,721 | 3,734 |
Gross unrealized gains | 99 | 54 |
Gross unrealized (losses) | (3) | |
Estimated fair value | 3,820 | 3,785 |
U. S. government agency securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 6,491 | 11,053 |
Gross unrealized gains | 41 | |
Gross unrealized (losses) | (55) | (347) |
Estimated fair value | 6,477 | 10,706 |
State and municipal securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 49,911 | 62,142 |
Gross unrealized gains | 1,665 | 765 |
Gross unrealized (losses) | (77) | (981) |
Estimated fair value | 51,499 | 61,926 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 3,721 | 3,734 |
Gross unrealized gains | 99 | 54 |
Gross unrealized (losses) | (3) | |
Estimated fair value | 3,820 | 3,785 |
Mortgage-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 124,073 | 146,547 |
Gross unrealized gains | 1,552 | 776 |
Gross unrealized (losses) | (785) | (3,165) |
Estimated fair value | 124,840 | 144,158 |
Asset-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 3,402 | 15,437 |
Gross unrealized gains | 4 | |
Gross unrealized (losses) | (103) | (157) |
Estimated fair value | 3,299 | 15,284 |
Other debt securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 8,816 | 11,863 |
Gross unrealized gains | 68 | 71 |
Gross unrealized (losses) | (42) | (200) |
Estimated fair value | $ 8,842 | $ 11,734 |
Securities - Summary of Securit
Securities - Summary of Securities with Unrealized Losses and Length of Time Continuous Loss Positions (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | $ 7,286 | $ 34,154 |
Less than 12 months, Gross unrealized (losses) | (125) | (574) |
12 months or more, Estimated fair value | 74,255 | 117,753 |
12 months or more, Gross unrealized losses | (937) | (4,279) |
Total, Estimated fair value | 81,541 | 151,907 |
Total, Gross unrealized losses | (1,062) | (4,853) |
U. S. government agency securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
12 months or more, Estimated fair value | 3,715 | 10,706 |
12 months or more, Gross unrealized losses | (55) | (347) |
Total, Estimated fair value | 3,715 | 10,706 |
Total, Gross unrealized losses | (55) | (347) |
State and municipal securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 13,455 | |
Less than 12 months, Gross unrealized (losses) | (212) | |
12 months or more, Estimated fair value | 6,340 | 17,376 |
12 months or more, Gross unrealized losses | (77) | (772) |
Total, Estimated fair value | 6,340 | 30,831 |
Total, Gross unrealized losses | (77) | (984) |
Mortgage-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 3,002 | 7,075 |
Less than 12 months, Gross unrealized (losses) | (7) | (17) |
12 months or more, Estimated fair value | 61,711 | 87,232 |
12 months or more, Gross unrealized losses | (778) | (3,148) |
Total, Estimated fair value | 64,713 | 94,307 |
Total, Gross unrealized losses | (785) | (3,165) |
Asset-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 3,299 | 8,262 |
Less than 12 months, Gross unrealized (losses) | (103) | (145) |
12 months or more, Estimated fair value | 2,439 | |
12 months or more, Gross unrealized losses | (12) | |
Total, Estimated fair value | 3,299 | 10,701 |
Total, Gross unrealized losses | (103) | (157) |
Other debt securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 985 | 5,362 |
Less than 12 months, Gross unrealized (losses) | (15) | (200) |
12 months or more, Estimated fair value | 2,489 | |
12 months or more, Gross unrealized losses | (27) | |
Total, Estimated fair value | 3,474 | 5,362 |
Total, Gross unrealized losses | $ (42) | $ (200) |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Millions | Jun. 30, 2019USD ($)Security | Dec. 31, 2018Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized losses in investment securities portfolio | $ 1.1 | |
Unrealized loss position | Security | 59 | 127 |
Public Deposits, Derivative Positions and Federal Home Loan Bank Advances | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value of securities | $ 80.8 |
Securities - Summary of Sale of
Securities - Summary of Sale of Debt and Equity Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Proceeds | $ 54,133 | $ 5,778 |
Gross gains | 370 | 107 |
Gross losses | $ (478) | $ (104) |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost and Fair Value of Debt and Equity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale, Amortized cost [Abstract] | ||
Due in less than one year | $ 6,794 | |
Due one to five years | 24,757 | |
Due five to ten years | 30,966 | |
Due beyond ten years | 2,701 | |
Amortized Cost | 192,693 | $ 247,042 |
Available-for-sale, Estimated fair value [Abstract] | ||
Due in less than one year | 6,870 | |
Due one to five years | 25,289 | |
Due five to ten years | 32,009 | |
Due beyond ten years | 2,650 | |
Estimated fair value | 194,957 | 243,808 |
Held-to-maturity, Amortized cost [Abstract] | ||
Due in less than one year | 998 | |
Due one to five years | 2,723 | |
Amortized Cost | 3,721 | 3,734 |
Securities held to maturity [Abstract] | ||
Due in less than one year | 999 | |
Due one to five years | 2,821 | |
Estimated fair value | 3,820 | 3,785 |
Mortgage-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized cost | 124,073 | |
Amortized Cost | 124,073 | 146,547 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | 124,840 | |
Estimated fair value | 124,840 | 144,158 |
Asset-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized cost | 3,402 | |
Amortized Cost | 3,402 | 15,437 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | 3,299 | |
Estimated fair value | $ 3,299 | $ 15,284 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 1,440,617 | $ 1,429,794 | ||||
Allowance for loan losses | (12,903) | $ (12,959) | (12,113) | $ (14,705) | $ (14,563) | $ (13,721) |
Loans, net | 1,427,714 | 1,417,681 | ||||
Commercial real estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 594,812 | 550,446 | ||||
Allowance for loan losses | (3,922) | (3,514) | (3,309) | (3,551) | (3,512) | (3,324) |
Consumer real estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 255,043 | 253,562 | ||||
Allowance for loan losses | (1,142) | (1,017) | (1,005) | (1,057) | (1,036) | (1,063) |
Construction and land development | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 123,901 | 174,670 | ||||
Allowance for loan losses | (1,733) | (2,366) | (2,431) | (1,764) | (1,742) | (1,628) |
Commercial and industrial | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 404,745 | 404,600 | ||||
Allowance for loan losses | (5,518) | (5,524) | (5,036) | (7,779) | (7,798) | (7,209) |
Consumer | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 26,704 | 25,615 | ||||
Allowance for loan losses | (166) | (139) | (105) | (120) | (122) | (91) |
Other | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 35,412 | 20,901 | ||||
Allowance for loan losses | $ (422) | $ (399) | $ (227) | $ (434) | $ (353) | $ (406) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | Jun. 30, 2018Contract | Jun. 30, 2019USD ($)Contract | Jun. 30, 2018USD ($)Contract | Jun. 30, 2019USD ($)Contract | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Minimum loan amount for loans analyzed by credit risk | $ 500,000 | |||||
Total loans | $ 1,440,617,000 | 1,440,617,000 | $ 1,429,794,000 | |||
Interest income recognized on a cash basis for impaired loans | 0 | $ 15,000 | 0 | $ 25,000 | ||
Investment in TDR | 1,200,000 | 1,200,000 | 1,400,000 | |||
Specific allowance related to loans | 170,000 | 170,000 | ||||
Additional commitments related to TDR | $ 0 | $ 0 | 0 | |||
New TDR identified during the period | Contract | 0 | 0 | 0 | 0 | ||
TDR, payment default within twelve months | Contract | 0 | 0 | 0 | 0 | ||
Loan period considered as payment default | 30 days | |||||
Troubled Debt Restructurings | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Specific allowance related to loans | $ 0 | $ 0 | 0 | |||
Doubtful | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Loan Balances by Category as well as Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 1,440,617 | $ 1,429,794 |
Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,729 | 3,898 |
Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,436,888 | 1,425,896 |
Performing Financial Instruments | Pass/Watch | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,411,541 | 1,406,656 |
Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 12,747 | 9,696 |
Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 12,600 | 9,544 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 594,812 | 550,446 |
Commercial real estate | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,349 | 1,391 |
Commercial real estate | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 593,463 | 549,055 |
Commercial real estate | Performing Financial Instruments | Pass/Watch | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 592,071 | 547,616 |
Commercial real estate | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 164 | 177 |
Commercial real estate | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,228 | 1,262 |
Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 255,043 | 253,562 |
Consumer real estate | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 899 | 922 |
Consumer real estate | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 254,144 | 252,640 |
Consumer real estate | Performing Financial Instruments | Pass/Watch | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 250,647 | 249,273 |
Consumer real estate | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,677 | 1,676 |
Consumer real estate | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,820 | 1,691 |
Construction and land development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 123,901 | 174,670 |
Construction and land development | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 124 | 8 |
Construction and land development | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 123,777 | 174,662 |
Construction and land development | Performing Financial Instruments | Pass/Watch | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 123,710 | 174,591 |
Construction and land development | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 50 | 52 |
Construction and land development | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 17 | 19 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 404,745 | 404,600 |
Commercial and industrial | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,318 | 1,546 |
Commercial and industrial | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 403,427 | 403,054 |
Commercial and industrial | Performing Financial Instruments | Pass/Watch | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 383,040 | 388,719 |
Commercial and industrial | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,856 | 7,790 |
Commercial and industrial | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 9,531 | 6,545 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 26,704 | 25,615 |
Consumer | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 39 | 31 |
Consumer | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 26,665 | 25,584 |
Consumer | Performing Financial Instruments | Pass/Watch | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 26,661 | 25,556 |
Consumer | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1 | |
Consumer | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 4 | 27 |
Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 35,412 | 20,901 |
Other | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 35,412 | 20,901 |
Other | Performing Financial Instruments | Pass/Watch | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 35,412 | $ 20,901 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning Balance | $ 12,959 | $ 14,563 | $ 12,113 | $ 13,721 |
Charged-off loans | (118) | (91) | (200) | (251) |
Recoveries | 62 | 64 | 104 | 389 |
Provision for loan losses | 169 | 886 | 846 | |
Ending Balance | 12,903 | 14,705 | 12,903 | 14,705 |
Commercial real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning Balance | 3,514 | 3,512 | 3,309 | 3,324 |
Recoveries | 6 | 6 | 12 | 10 |
Provision for loan losses | 402 | 33 | 601 | 217 |
Ending Balance | 3,922 | 3,551 | 3,922 | 3,551 |
Consumer real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning Balance | 1,017 | 1,036 | 1,005 | 1,063 |
Recoveries | 13 | 1 | 16 | 2 |
Provision for loan losses | 112 | 20 | 121 | (8) |
Ending Balance | 1,142 | 1,057 | 1,142 | 1,057 |
Construction and land development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning Balance | 2,366 | 1,742 | 2,431 | 1,628 |
Provision for loan losses | (633) | 22 | (698) | 136 |
Ending Balance | 1,733 | 1,764 | 1,733 | 1,764 |
Commercial and industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning Balance | 5,524 | 7,798 | 5,036 | 7,209 |
Charged-off loans | (26) | (79) | (26) | (226) |
Recoveries | 14 | 53 | 16 | 326 |
Provision for loan losses | 6 | 7 | 492 | 470 |
Ending Balance | 5,518 | 7,779 | 5,518 | 7,779 |
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning Balance | 139 | 122 | 105 | 91 |
Charged-off loans | (41) | (12) | (78) | (25) |
Recoveries | 22 | 4 | 41 | 51 |
Provision for loan losses | 46 | 6 | 98 | 3 |
Ending Balance | 166 | 120 | 166 | 120 |
Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning Balance | 399 | 353 | 227 | 406 |
Charged-off loans | (51) | (96) | ||
Recoveries | 7 | 19 | ||
Provision for loan losses | 67 | 81 | 272 | 28 |
Ending Balance | $ 422 | $ 434 | $ 422 | $ 434 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for Loan Losses: | ||||||
Collectively evaluated for impairment | $ 12,733 | $ 12,113 | ||||
Individually evaluated for impairment | 170 | |||||
Allowance for Loan Losses, Ending Balance | 12,903 | $ 12,959 | 12,113 | $ 14,705 | $ 14,563 | $ 13,721 |
Loans: | ||||||
Collectively evaluated for impairment | 1,436,888 | 1,425,896 | ||||
Individually evaluated for impairment | 2,192 | 2,278 | ||||
Acquired with deteriorated credit quality | 1,537 | 1,620 | ||||
Total | 1,440,617 | 1,429,794 | ||||
Commercial real estate | ||||||
Allowance for Loan Losses: | ||||||
Collectively evaluated for impairment | 3,922 | 3,309 | ||||
Allowance for Loan Losses, Ending Balance | 3,922 | 3,514 | 3,309 | 3,551 | 3,512 | 3,324 |
Loans: | ||||||
Collectively evaluated for impairment | 593,463 | 549,055 | ||||
Individually evaluated for impairment | 1,238 | 1,278 | ||||
Acquired with deteriorated credit quality | 111 | 113 | ||||
Total | 594,812 | 550,446 | ||||
Consumer real estate | ||||||
Allowance for Loan Losses: | ||||||
Collectively evaluated for impairment | 1,142 | 1,005 | ||||
Allowance for Loan Losses, Ending Balance | 1,142 | 1,017 | 1,005 | 1,057 | 1,036 | 1,063 |
Loans: | ||||||
Collectively evaluated for impairment | 254,144 | 252,640 | ||||
Individually evaluated for impairment | 213 | 183 | ||||
Acquired with deteriorated credit quality | 686 | 739 | ||||
Total | 255,043 | 253,562 | ||||
Construction and land development | ||||||
Allowance for Loan Losses: | ||||||
Collectively evaluated for impairment | 1,733 | 2,431 | ||||
Allowance for Loan Losses, Ending Balance | 1,733 | 2,366 | 2,431 | 1,764 | 1,742 | 1,628 |
Loans: | ||||||
Collectively evaluated for impairment | 123,777 | 174,662 | ||||
Individually evaluated for impairment | 117 | |||||
Acquired with deteriorated credit quality | 7 | 8 | ||||
Total | 123,901 | 174,670 | ||||
Commercial and industrial | ||||||
Allowance for Loan Losses: | ||||||
Collectively evaluated for impairment | 5,348 | 5,036 | ||||
Individually evaluated for impairment | 170 | |||||
Allowance for Loan Losses, Ending Balance | 5,518 | 5,524 | 5,036 | 7,779 | 7,798 | 7,209 |
Loans: | ||||||
Collectively evaluated for impairment | 403,427 | 403,054 | ||||
Individually evaluated for impairment | 616 | 817 | ||||
Acquired with deteriorated credit quality | 702 | 729 | ||||
Total | 404,745 | 404,600 | ||||
Consumer | ||||||
Allowance for Loan Losses: | ||||||
Collectively evaluated for impairment | 166 | 105 | ||||
Allowance for Loan Losses, Ending Balance | 166 | 139 | 105 | 120 | 122 | 91 |
Loans: | ||||||
Collectively evaluated for impairment | 26,665 | 25,584 | ||||
Individually evaluated for impairment | 8 | |||||
Acquired with deteriorated credit quality | 31 | 31 | ||||
Total | 26,704 | 25,615 | ||||
Other | ||||||
Allowance for Loan Losses: | ||||||
Collectively evaluated for impairment | 422 | 227 | ||||
Allowance for Loan Losses, Ending Balance | 422 | $ 399 | 227 | $ 434 | $ 353 | $ 406 |
Loans: | ||||||
Collectively evaluated for impairment | 35,412 | 20,901 | ||||
Total | $ 35,412 | $ 20,901 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Allocation of ALL with Corresponding Percentage of ALL in Each Category to Total Loans, Net of Deferred Fee (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses, Amount | $ 12,903 | $ 12,959 | $ 12,113 | $ 14,705 | $ 14,563 | $ 13,721 |
Allowance for loan losses, Percentage of total loans | 0.90% | 0.85% | ||||
Commercial real estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses, Amount | $ 3,922 | 3,514 | $ 3,309 | 3,551 | 3,512 | 3,324 |
Allowance for loan losses, Percentage of total loans | 0.27% | 0.23% | ||||
Consumer real estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses, Amount | $ 1,142 | 1,017 | $ 1,005 | 1,057 | 1,036 | 1,063 |
Allowance for loan losses, Percentage of total loans | 0.08% | 0.07% | ||||
Construction and land development | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses, Amount | $ 1,733 | 2,366 | $ 2,431 | 1,764 | 1,742 | 1,628 |
Allowance for loan losses, Percentage of total loans | 0.12% | 0.17% | ||||
Commercial and industrial | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses, Amount | $ 5,518 | 5,524 | $ 5,036 | 7,779 | 7,798 | 7,209 |
Allowance for loan losses, Percentage of total loans | 0.39% | 0.35% | ||||
Consumer | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses, Amount | $ 166 | 139 | $ 105 | 120 | 122 | 91 |
Allowance for loan losses, Percentage of total loans | 0.01% | 0.01% | ||||
Other | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Allowance for loan losses, Amount | $ 422 | $ 399 | $ 227 | $ 434 | $ 353 | $ 406 |
Allowance for loan losses, Percentage of total loans | 0.03% | 0.02% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Impaired Loans Evaluated for Specific Loss Allowance (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | $ 3,115 | $ 3,898 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 4,420 | 9,403 |
Impaired loans with an allowance recorded, Related allowance | 170 | |
Impaired loans with an allowance recorded, Recorded investment | 614 | |
Impaired loans with an allowance recorded, Unpaid principal balance | 4,744 | |
Recorded investment | 3,729 | 3,898 |
Unpaid principal balance | 9,164 | 9,403 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 1,349 | 1,391 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,416 | 1,775 |
Consumer real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 899 | 922 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,307 | 1,204 |
Construction and land development | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 124 | 8 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 151 | 18 |
Commercial and industrial | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 704 | 1,546 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,478 | 6,350 |
Impaired loans with an allowance recorded, Related allowance | 170 | |
Impaired loans with an allowance recorded, Recorded investment | 614 | |
Impaired loans with an allowance recorded, Unpaid principal balance | 4,744 | |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 39 | 31 |
Impaired loans with no related allowance recorded, Unpaid principal balance | $ 68 | $ 56 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no related allowance recorded, Average recorded investment | $ 3,153 | $ 1,181 | $ 3,163 | $ 1,189 |
Impaired loans with no related allowance recorded, Interest income recognized | 43 | 15 | 59 | 25 |
Impaired loans with an allowance recorded, Average recorded investment | 732 | 5,425 | 760 | 5,345 |
Impaired loans with an allowance recorded, Interest income recognized | 31 | 118 | ||
Average recorded investment | 3,885 | 6,606 | 3,923 | 6,534 |
Interest income recognized | 43 | 46 | 59 | 143 |
Commercial real estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no related allowance recorded, Average recorded investment | 1,356 | 1,181 | 1,365 | 1,189 |
Impaired loans with no related allowance recorded, Interest income recognized | 19 | 15 | 35 | 25 |
Consumer real estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no related allowance recorded, Average recorded investment | 916 | 917 | ||
Impaired loans with no related allowance recorded, Interest income recognized | 4 | 4 | ||
Construction and land development | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no related allowance recorded, Average recorded investment | 128 | 128 | ||
Impaired loans with no related allowance recorded, Interest income recognized | 1 | 1 | ||
Commercial and industrial | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no related allowance recorded, Average recorded investment | 709 | 709 | ||
Impaired loans with no related allowance recorded, Interest income recognized | 19 | 19 | ||
Impaired loans with an allowance recorded, Average recorded investment | 732 | 5,425 | 760 | 5,345 |
Impaired loans with an allowance recorded, Interest income recognized | $ 31 | $ 118 | ||
Consumer | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no related allowance recorded, Average recorded investment | $ 44 | $ 44 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 4,635 | $ 1,595 |
Loans Not Past Due | 1,435,982 | 1,428,199 |
Total | 1,440,617 | 1,429,794 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,307 | 527 |
Loans Not Past Due | 593,505 | 549,919 |
Total | 594,812 | 550,446 |
Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,058 | 919 |
Loans Not Past Due | 252,985 | 252,643 |
Total | 255,043 | 253,562 |
Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 51 | |
Loans Not Past Due | 123,850 | 174,670 |
Total | 123,901 | 174,670 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 974 | 54 |
Loans Not Past Due | 403,771 | 404,546 |
Total | 404,745 | 404,600 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 245 | 95 |
Loans Not Past Due | 26,459 | 25,520 |
Total | 26,704 | 25,615 |
Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 35,412 | 20,901 |
Total | 35,412 | 20,901 |
30 - 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 628 | 475 |
30 - 59 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 300 | |
30 - 59 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 378 | 69 |
30 - 59 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 89 | 54 |
30 - 59 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 161 | 52 |
60 - 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,605 | 302 |
60 - 89 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,307 | 227 |
60 - 89 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 947 | 75 |
60 - 89 Days Past Due | Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 51 | |
60 - 89 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 271 | |
60 - 89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 29 | |
Greater than 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,402 | 818 |
Greater than 89 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 733 | 775 |
Greater than 89 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 614 | |
Greater than 89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 54 | $ 43 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Schedule of Non-Accrual Loans, Past Due Loans over 89 Days Outstanding and Accruing and Troubled Debt Restructurings (TDR) by Class of Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | $ 1,443 | $ 2,078 |
Past Due Over 89 Days and Accruing | 302 | 214 |
Troubled Debt Restructurings | 1,238 | 1,391 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings | 1,238 | 1,391 |
Consumer real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 676 | 1,187 |
Past Due Over 89 Days and Accruing | 278 | 214 |
Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 124 | 19 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 616 | 817 |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 27 | $ 55 |
Past Due Over 89 Days and Accruing | $ 24 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Schedule of activity in purchased credit impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | ||
Balance, beginning , carrying value | $ 1,608 | $ 1,620 |
Change due to payments received and accretion | (71) | (83) |
Balance, ending, carrying value | 1,537 | 1,537 |
Accretable Yield For PCI Loans | ||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | ||
Balance, beginning , carrying value | 438 | 440 |
Other | 10 | |
Balance, ending, carrying value | 405 | 405 |
Accretion | $ (33) | $ (45) |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | ||||
Operating lease, liability | $ 12,889,000 | $ 12,889,000 | ||
Operating lease, right-of-use asset | $ 12,200,000 | $ 12,200,000 | ||
Operating lease, weighted average remaining lease term | 11 years 1 month 6 days | 11 years 1 month 6 days | ||
Operating lease, weighted average discount rate, percent | 3.53% | 3.53% | ||
Operating leases, rent expense | $ 415,000,000 | $ 809,000,000 | ||
Sale and leaseback transaction | $ 0 | $ 0 | $ 0 | $ 0 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | ||
Operating lease cost | $ 455 | $ 937 |
Total lease cost | $ 455 | $ 937 |
Premises and Equipment - Maturi
Premises and Equipment - Maturity Analysis of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lease payments due: | |
Within one year | $ 1,536 |
After one but within two years | 1,553 |
After two but within three years | 1,517 |
After three but within four years | 1,457 |
After four but within five years | 1,221 |
After five years | 8,267 |
Total undiscounted cash flows | 15,551 |
Discount on cash flows | (2,662) |
Operating lease, liability | $ 12,889 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank Advances [Line Items] | ||
Outstanding borrowings | $ 10,000 | $ 125,000 |
Investment securities, FHLB stock and commercial and residential real estate mortgage loans | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank Advances Collateralized Investment Securities Value | 4,100 | |
Mortgage loans collateralized amount | 728,500 | |
Amount of available credit | $ 150,700 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Summary of Contractual Maturities and Average Effective Rates of Outstanding Advances (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank Advances Maturities Summary [Abstract] | ||
2019 | $ 125,000 | |
2020 | $ 10,000 | |
Total amount | $ 10,000 | $ 125,000 |
2019 | 2.48% | |
2020 | 2.42% | |
Total interest rates | 2.42% | 2.48% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes In Accumulated Other Comprehensive Income (Loss) By Component, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | $ 259,751 | $ 254,379 | $ 148,691 | $ 146,946 | $ 254,379 | $ 146,946 |
Other comprehensive income (loss) before reclassification, net of tax | 3,935 | (2,335) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (433) | (443) | ||||
Other comprehensive income (loss) | 1,090 | 2,412 | (111) | (2,667) | 3,502 | (2,778) |
Ending balance | 262,664 | 259,751 | 153,146 | 148,691 | 262,664 | 153,146 |
Gains and Losses on Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (2,636) | (3,679) | (2,636) | (3,679) | ||
Other comprehensive income (loss) before reclassification, net of tax | (205) | 1,288 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (353) | (435) | ||||
Other comprehensive income (loss) | (558) | 853 | ||||
Ending balance | (3,194) | (2,826) | (3,194) | (2,826) | ||
Unrealized Gains and Losses on Available for Sale Securities | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (680) | 1,162 | (680) | 1,162 | ||
Other comprehensive income (loss) before reclassification, net of tax | 4,140 | (3,643) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (80) | 2 | ||||
Other comprehensive income (loss) | 4,060 | (3,641) | ||||
Ending balance | 3,380 | (2,479) | 3,380 | (2,479) | ||
Unrealized Losses on Securities Transferred to Held to Maturity | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (10) | (10) | ||||
Other comprehensive income (loss) before reclassification, net of tax | 20 | |||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (10) | |||||
Other comprehensive income (loss) | 10 | |||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (904) | (3,316) | (5,194) | (2,527) | (3,316) | (2,527) |
Other comprehensive income (loss) | 1,090 | 2,412 | (111) | (2,667) | 3,502 | (2,778) |
Ending balance | $ 186 | $ (904) | $ (5,305) | $ (5,194) | $ 186 | $ (5,305) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Significant Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||||
Net gain (loss) on sale of securities | $ (108) | $ 3 | ||||
Interest expense - Federal Home Loan Bank advances | $ (324) | $ (627) | (1,156) | (1,117) | ||
Income tax benefit (expense) | (1,814) | (665) | (3,160) | (1,148) | ||
Net income | 5,756 | $ 4,779 | 3,513 | $ 3,194 | 10,535 | 6,707 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Losses on Cash Flow Hedges | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||||
Interest expense money market | (114) | (111) | (224) | (218) | ||
Interest expense - Federal Home Loan Bank advances | (51) | (113) | (138) | (257) | ||
Income tax benefit (expense) | 16 | 9 | 40 | |||
Net income | (165) | (208) | (353) | (435) | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Securities | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||||
Net gain (loss) on sale of securities | (121) | 3 | (108) | 3 | ||
Income tax benefit (expense) | 32 | (1) | 28 | (1) | ||
Net income | $ (89) | $ 2 | $ (80) | 2 | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Losses on Securities Transferred to Held to Maturity | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||||
Interest income - securities | (14) | |||||
Income tax benefit (expense) | 4 | |||||
Net income | $ (10) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Line Items] | ||||
Effective tax rate | 24.00% | 15.90% | 23.10% | 14.60% |
Income tax increase (decrease) | $ 2,000 | $ (277,000) | $ (31,000) | $ (640,000) |
Federal statutory income tax rate | 21.00% | |||
Tennessee | State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Excise tax rate | 6.50% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments Representing Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Unused commitments to extend credit | $ 702,007 | $ 707,675 |
Standby letters of credit | 11,124 | 12,273 |
Total | $ 713,131 | $ 719,948 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - Designated as Hedging Instrument - Interest Rate Swaps - Cash Flow Hedges - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||
Notional amounts | $ 0 | $ 20,000,000 | ||
Derivative termination fees | 1,500,000 | |||
Investment securities pledged collateral to counterparties | 1,900,000 | |||
Investment securities pledged collateral from counterparties | $ 0 | |||
Gains (losses) relating to mortgage banking derivative instruments | $ 0 | $ 0 |
Derivatives - Summary of Intere
Derivatives - Summary of Interest-Rate Swaps Designated as Cash Flow Hedges (Details) - Designated as Hedging Instrument - Cash Flow Hedges - Interest Rate Swaps - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2019 | |
Derivative [Line Items] | ||
Notional amounts | $ 20,000,000 | $ 0 |
Weighted average pay rates | 3.54% | |
Weighted average receive rates | 3 month LIBOR | |
Weighted average maturity | 4 years 6 months | |
Fair value | $ (836,000) | |
Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax | $ (617,000) |
Derivatives - Summary of Custom
Derivatives - Summary of Customer Related Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Interest rate swap, Notional amount | $ 55,880,000 | $ 58,252,000 |
Pay fixed/receive variable swaps | ||
Derivative [Line Items] | ||
Interest rate swap, Notional amount | 27,940,000 | 29,126,000 |
Interest rate swap, Estimated fair value | (741,000) | 24,000 |
Pay variable/receive fixed swaps | ||
Derivative [Line Items] | ||
Interest rate swap, Notional amount | 27,940,000 | 29,126,000 |
Interest rate swap, Estimated fair value | $ 741,000 | $ (24,000) |
Derivatives - Summary of Net Ga
Derivatives - Summary of Net Gains (Losses) Relating to Mortgage Banking Derivative Instruments Included in Mortgage Banking Income (Details) - Mortgage Banking Derivative Instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Derivative [Line Items] | ||
Net gains (losses) relating to mortgage banking derivative instruments | $ 239 | $ 239 |
Mortgage Loan Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Net gains (losses) relating to mortgage banking derivative instruments | 592 | 592 |
Mortgage-Backed Securities Forward Sales Commitments | ||
Derivative [Line Items] | ||
Net gains (losses) relating to mortgage banking derivative instruments | $ (353) | $ (353) |
Derivatives - Summary of Amount
Derivatives - Summary of Amount and Fair Value of Mortgage Banking Derivative Instruments Included in Consolidated Balance Sheets (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Other Assets | Mortgage Loan Interest Rate Lock Commitments | |
Derivative [Line Items] | |
Notional amount, assets | $ 52,100 |
Estimated fair value, asset | 592 |
Other Liabilities | Mortgage-Backed Securities Forward Sales Commitments | |
Derivative [Line Items] | |
Notional amount, liabilities | 49,750 |
Estimated fair value, liabilities | $ (278) |
Stock Options and Restricted _3
Stock Options and Restricted Shares - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Apr. 30, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 2.6 | |||
Total fair value of shares vested | $ 1.6 | $ 0.9 | ||
Vesting period | 4 years | |||
Contractual term | 10 years | |||
Options granted | 50,000 | 0 | ||
Unrecognized compensation cost | $ 0.3 | |||
Restricted Shares | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cost expected to be recognized over a weighted-average period | 1 year 10 months 24 days | |||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cost expected to be recognized over a weighted-average period | 2 years 9 months 18 days | |||
CapStar Bank 2008 Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares of stock reserved for issuance of stock incentives | 1,569,475 | |||
Shares issuable under both restricted share and stock option grants | 354,518 | |||
CapStar Bank 2008 Stock Incentive Plan | Board of Directors | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares of stock reserved for issuance of stock incentives | 400,000 |
Stock Options and Restricted _4
Stock Options and Restricted Shares - Summary of Company Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Stock-based compensation expense before income taxes | $ 340 | $ 325 | $ 684 | $ 630 |
Less: deferred tax benefit | (89) | (85) | (179) | (165) |
Reduction of net income | $ 251 | $ 240 | $ 505 | $ 465 |
Stock Options and Restricted _5
Stock Options and Restricted Shares - Summary of Changes in Company's Nonvested Restricted Shares (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Restricted Shares, Abstract | |
Restricted Shares, Nonvested Beginning Balance | shares | 157,616 |
Restricted Shares, Granted | shares | 30,183 |
Restricted Shares, Vested | shares | (55,650) |
Restricted Shares, Forfeited | shares | (11,801) |
Restricted Shares, Nonvested Ending Balance | shares | 120,348 |
Weighted Average Grant Date Fair Value, Abstract | |
Weighted Average Grant Date Fair Value, Nonvested Beginning Balance | $ / shares | $ 17 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 15.91 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 15.13 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 17.73 |
Weighted Average Grant Date Fair Value, Nonvested Ending Balance | $ / shares | $ 17.52 |
Stock Options and Restricted _6
Stock Options and Restricted Shares - Summary of Fair Value of Options Granted Using Weighted Average Assumptions (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend yield | 1.35% |
Expected term (in years) | 6 years 6 months |
Expected stock price volatility | 29.55% |
Risk-free interest rate | 2.25% |
Stock Options and Restricted _7
Stock Options and Restricted Shares - Summary of Activity in Stock Options (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Shares, Abstract | ||
Shares Outstanding, Beginning Balance | shares | 507,903 | |
Shares Outstanding, Granted | shares | 50,000 | 0 |
Shares Outstanding, Exercised | shares | (218,954) | |
Shares Outstanding, Ending Balance | shares | 338,949 | 507,903 |
Shares, Fully Vested and Expected to Vest | shares | 338,508 | |
Shares, Exercisable at End of Period | shares | 282,699 | |
Weighted Average Exercise Price, Abstract | ||
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 8.66 | |
Weighted Average Exercise Price Outstanding, Granted | $ / shares | 14.84 | |
Weighted Average Exercise Price Outstanding, Exercised | $ / shares | 6.68 | |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | 10.86 | $ 8.66 |
Weighted Average Exercise Price, Fully vested and expected to vest | $ / shares | 10.85 | |
Weighted Average Exercise Price, Exercisable at End of Period | $ / shares | $ 10.10 | |
Weighted Average Remaining Contractual Term (year), Abstract | ||
Weighted Average Remaining Contractual Term Outstanding | 4 years 9 months 18 days | |
Weighted Average Remaining Contractual Term, Fully Vested and Expected to Vest | 4 years 9 months 18 days | |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 3 years 9 months 18 days |
Stock Options and Restricted _8
Stock Options and Restricted Shares - Information Related to Stock Options (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Intrinsic value of options exercised | $ 2,007,300 | $ 2,081,344 |
Cash received from option exercises | 1,253,233 | 2,186,420 |
Tax benefit realized from option exercises | $ 14,979 | $ 544,063 |
Weighted average fair value of options granted | $ 5.35 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
CapStar Financial Holdings, Inc. | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 228,302 | $ 222,030 | |
Tier I capital to risk-weighted assets, actual amount | 215,220 | 209,738 | |
Tier I capital to average assets, actual amount | $ 215,220 | $ 209,738 | |
Total capital to risk-weighted assets, actual ratio | 13.29% | 12.84% | |
Tier I capital to risk-weighted assets, actual ratio | 12.53% | 12.13% | |
Tier I capital to average assets, actual ratio | 11.01% | 11.06% | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 137,394 | $ 138,336 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 103,046 | 103,752 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 78,224 | $ 75,867 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8.00% | 8.00% |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6.00% | 6.00% |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4.00% | 4.00% |
CapStar Financial Holdings, Inc. | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier I capital to risk-weighted assets, actual amount | $ 206,220 | $ 200,738 | |
Tier I capital to risk-weighted assets, actual ratio | 12.01% | 11.61% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 77,284 | $ 77,814 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.50% | 4.50% |
CapStar Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 213,170 | $ 201,972 | |
Tier I capital to risk-weighted assets, actual amount | 200,088 | 189,680 | |
Tier I capital to average assets, actual amount | $ 200,088 | $ 189,680 | |
Total capital to risk-weighted assets, actual ratio | 12.41% | 11.68% | |
Tier I capital to risk-weighted assets, actual ratio | 11.65% | 10.97% | |
Tier I capital to average assets, actual ratio | 10.24% | 10.01% | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 137,368 | $ 138,294 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 103,026 | 103,721 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 78,186 | $ 75,828 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8.00% | 8.00% |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6.00% | 6.00% |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4.00% | 4.00% |
Total capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 171,710 | $ 172,868 |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | 137,368 | 138,294 |
Tier I capital to average assets, minimum to be well capitalized amount | [2] | $ 97,733 | $ 94,785 |
Total capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 10.00% | 10.00% |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 8.00% | 8.00% |
Tier I capital to average assets, minimum to be well capitalized ratio | [2] | 5.00% | 5.00% |
CapStar Bank | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier I capital to risk-weighted assets, actual amount | $ 183,588 | $ 173,180 | |
Tier I capital to risk-weighted assets, actual ratio | 10.69% | 10.02% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 77,270 | $ 77,791 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.50% | 4.50% |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 111,612 | $ 112,364 |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 6.50% | 6.50% |
[1] | For the calendar year 2019, the Company must maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 2.5% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. | ||
[2] | For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Schedule of Capital Amounts and Ratios (Parenthetical) (Details) | Jun. 30, 2019 |
Banking And Thrift [Abstract] | |
Minimum risk based capital ratios | 2.50% |
Earning Per Share - Summary of
Earning Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic net income per share calculation: | ||||
Numerator – Net income | $ 5,756 | $ 3,513 | $ 10,535 | $ 6,707 |
Denominator – Average common shares outstanding | 17,663,992 | 11,845,822 | 17,723,286 | 11,755,535 |
Basic net income per share of common stock | $ 0.33 | $ 0.30 | $ 0.59 | $ 0.57 |
Diluted net income per share calculation: | ||||
Numerator – Net income | $ 5,756 | $ 3,513 | $ 10,535 | $ 6,707 |
Denominator – Average common shares outstanding | 17,663,992 | 11,845,822 | 17,723,286 | 11,755,535 |
Dilutive shares contingently issuable | 986,714 | 1,221,401 | 1,017,036 | 1,266,209 |
Average diluted common shares outstanding | 18,650,706 | 13,067,223 | 18,740,322 | 13,021,744 |
Diluted net income per share of common stock | $ 0.31 | $ 0.27 | $ 0.56 | $ 0.52 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Other real estate owned | $ 0 | $ 0 |
Loans held for sale carried at fair value | $ 37,604,000 | $ 0 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Securities available-for-sale, at fair value | $ 194,957,000 | $ 243,808,000 |
Loans held for sale carried at fair value | 37,604,000 | 0 |
Obligations of States and Political Subdivisions | ||
Assets: | ||
Securities available-for-sale, at fair value | 51,499,000 | 61,926,000 |
Asset-backed securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 3,299,000 | 15,284,000 |
Other debt securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 8,842,000 | 11,734,000 |
Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non-hedging derivatives | ||
Derivative assets: | ||
Residential mortgage loans held for sale | 592,000 | |
Fair Value Measurements Recurring Basis | ||
Assets: | ||
Loans held for sale carried at fair value | 37,604,000 | |
Fair Value Measurements Recurring Basis | U.S. Government-sponsored Agencies | ||
Assets: | ||
Securities available-for-sale, at fair value | 6,477,000 | 10,706,000 |
Fair Value Measurements Recurring Basis | Obligations of States and Political Subdivisions | ||
Assets: | ||
Securities available-for-sale, at fair value | 51,499,000 | 61,926,000 |
Fair Value Measurements Recurring Basis | Mortgage-backed Securities-residential | ||
Assets: | ||
Securities available-for-sale, at fair value | 124,840,000 | 144,158,000 |
Fair Value Measurements Recurring Basis | Asset-backed securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 3,299,000 | 15,284,000 |
Fair Value Measurements Recurring Basis | Other debt securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 8,842,000 | 11,734,000 |
Fair Value Measurements Recurring Basis | Mortgage Loan Interest Rate Lock Commitments | Non-hedging derivatives | ||
Derivative assets: | ||
Residential mortgage loans held for sale | 592,000 | |
Fair Value Measurements Recurring Basis | Forward Sales Commitments | Non-hedging derivatives | ||
Derivative liabilities: | ||
Mortgage-backed securities forward sales commitments | (278,000) | |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Customer Related | Non-hedging derivatives | ||
Derivative assets: | ||
Interest rate swaps - customer related | 752,000 | 494,000 |
Derivative liabilities: | ||
Total derivative liabilities | (752,000) | (494,000) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Cash Flow Hedges | ||
Derivative liabilities: | ||
Total derivative liabilities | (836,000) | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Loans held for sale carried at fair value | 37,604,000 | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored Agencies | ||
Assets: | ||
Securities available-for-sale, at fair value | 6,477,000 | 10,706,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Obligations of States and Political Subdivisions | ||
Assets: | ||
Securities available-for-sale, at fair value | 51,499,000 | 61,926,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities-residential | ||
Assets: | ||
Securities available-for-sale, at fair value | 124,840,000 | 144,158,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 3,299,000 | 15,284,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Other debt securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 8,842,000 | 11,734,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Forward Sales Commitments | Non-hedging derivatives | ||
Derivative liabilities: | ||
Mortgage-backed securities forward sales commitments | (278,000) | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps - Customer Related | Non-hedging derivatives | ||
Derivative assets: | ||
Interest rate swaps - customer related | 752,000 | 494,000 |
Derivative liabilities: | ||
Total derivative liabilities | (752,000) | (494,000) |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps - Cash Flow Hedges | ||
Derivative liabilities: | ||
Total derivative liabilities | $ (836,000) | |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non-hedging derivatives | ||
Derivative assets: | ||
Residential mortgage loans held for sale | $ 592,000 |
Fair Value - Reconciliation of
Fair Value - Reconciliation of Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) (Details) - Mortgage Loan Interest Rate Lock Commitments - Significant Unobservable Inputs (Level 3) - Fair Value Measurements Recurring Basis $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Gains or losses include in mortgage banking income | $ 592 |
Balance of recurring Level 3 assets at June 30th | $ 592 |
Fair Value - Summary of Quantit
Fair Value - Summary of Quantitative Information About Level 3 Fair Value Measurements on Recurring Basis (Details) - Significant Unobservable Inputs (Level 3) - Mortgage Loan Interest Rate Lock Commitments - Non-hedging derivatives $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Residential mortgage loans held for sale | $ 592 |
Valuation Technique(s) | Consensus pricing |
Unobservable Input(s) | Origination pull-through rate |
Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable inputs range | 0.0068 |
Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable inputs range | 0.0096 |
Weighted Average | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable inputs range | 0.0080 |
Fair Value - Summary of Asset_2
Fair Value - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Commercial and industrial $ in Thousands | Jun. 30, 2019USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Commercial and industrial | $ 444 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Commercial and industrial | 0 |
Significant Other Observable Inputs (Level 2) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Commercial and industrial | 0 |
Significant Unobservable Inputs (Level 3) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Commercial and industrial | $ 444 |
Fair Value - Summary of Quant_2
Fair Value - Summary of Quantitative Information About Level 3 Fair Value Measurements for Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Commercial and industrial $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Commercial and industrial | $ 444 |
Significant Unobservable Inputs (Level 3) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Commercial and industrial | $ 444 |
Valuation Technique(s) | Sales Comparison approach |
Unobservable Input(s) | Appraisal discounts |
Range (Weighted-Average) | 25.00% |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying Value and Fair Values of the Bank's Financial Instruments (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Estimated fair value | $ 194,957,000 | $ 243,808,000 |
Securities held to maturity, fair value | 3,820,000 | 3,785,000 |
Loans held for sale | 37,604,000 | 0 |
Carrying amount | ||
Financial assets: | ||
Cash and due from banks, interest-bearing deposits in financial institutions | 156,085,000 | 94,681,000 |
Federal funds sold | 10,762,000 | |
Estimated fair value | 194,957,000 | 243,808,000 |
Securities held to maturity, fair value | 3,721,000 | 3,734,000 |
Loans held for sale | 89,629,000 | 57,618,000 |
Restricted equity securities | 14,150,000 | 12,038,000 |
Loans | 1,440,617,000 | 1,429,794,000 |
Accrued interest receivable | 6,045,000 | 5,964,000 |
Other assets | 35,157,000 | 34,489,000 |
Financial liabilities: | ||
Deposits | 1,722,770,000 | 1,570,008,000 |
Federal Home Loan Bank advances | 10,000,000 | 125,000,000 |
Other liabilities | 1,606,000 | 2,753,000 |
Fair value | ||
Financial assets: | ||
Loans | 1,435,130,000 | 1,442,082,000 |
Fair value | Level 1 | ||
Financial assets: | ||
Cash and due from banks, interest-bearing deposits in financial institutions | 156,085,000 | 94,681,000 |
Federal funds sold | 10,762,000 | |
Fair value | Level 2 | ||
Financial assets: | ||
Estimated fair value | 194,957,000 | 243,808,000 |
Securities held to maturity, fair value | 3,820,000 | 3,785,000 |
Loans held for sale | 90,800,000 | 58,596,000 |
Accrued interest receivable | 6,045,000 | 5,964,000 |
Financial liabilities: | ||
Federal Home Loan Bank advances | 10,000,000 | 126,548,000 |
Fair value | Level 2 / Level 3 | ||
Financial assets: | ||
Other assets | 35,157,000 | 34,489,000 |
Fair value | Level 3 | ||
Financial liabilities: | ||
Deposits | 1,723,123,000 | 1,572,880,000 |
Other liabilities | $ 1,606,000 | $ 2,753,000 |